[KGP-14] GC Membership of ELYSIA

Klaytn Governance Proposal (KGP)
1

Summary
ELYSIA submitted the GC Membership application on 2 August 2023 (GC Member Application of ELYSIA). As the application is endorsed by Ozys and CREDER-ITCEN, the application will be brought to the voting of the Klaytn GC.

1. Name of Applicant

ELYSIA

2. Introduction of Applicant

The ELYSIA team is a pioneering Real-World Asset (RWA) project with a profound vision of bridging the realms of TradFi and DeFi to deliver unparalleled value to the global economy. Our journey began in 2018, dedicated to conceptualizing and advancing the ‘ELYSIA’ RWA tokenization protocol and ‘ELYFI’ RWA DeFi protocol, all aimed at realizing this vision.

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Real-world asset tokenization, ELYSIA

To foster a seamless convergence between TradFi and DeFi, it becomes imperative to integrate real-world assets (RWA) onto the blockchain. In pursuit of this goal, our team has diligently advanced the ELYSIA protocol, designed specifically to tokenize tangible assets. ELYSIA made its initial breakthrough by introducing tokenization within the residential real estate sector, pioneering the fusion of real estate investment with blockchain technology. Since then, we have broadened our scope from Korean real estate to encompass American properties, positioning ourselves as trailblazers in the real estate tokenization trend. Notably, we have enhanced the ELYSIA protocol’s versatility by creating diverse products, including loans and card supply chain finance. We have successfully tokenized over 100 real assets, amounting to approximately $8 million in value. These RWA tokens have become pivotal in TradFi and DeFi, serving as collateral and sought-after investment products within the crypto market, generating substantial value for all stakeholders.

Real-world assets based DeFi with ELYFI

ELYFI is an exclusive real-world asset DeFi protocol, utilizing tokens issued by the ELYSIA foundation. Our protocol caters to borrowers seeking stablecoin loans by leveraging their RWA tokens as collateral.

A true multi-chain DeFi solution, ELYFI supports various networks, including Ethereum and BSC, and we have launched a new RWA on the Klaytn mainnet (Cypress) in July. ELYFI boasts two distinctive versions: V1 offers a single money pool comprising USDT, USDC, DAI, and BUSD, while V2 introduces a USDT money pool featuring a multi-tranche (Senior/Equity tranche) structure. ELYFI has facilitated approximately $8 million in cumulative loans.

ELYFI brings newfound stability to the crypto market while creating tangible value by establishing a novel funding channel for traditional markets. DeFi investors now gain access to secure and diverse investment opportunities akin to traditional financial markets, empowering them with unprecedented access to profitable and secure RWAs, such as real estate and e-commerce accounts receivables. Furthermore, ELYFI has effectively addressed fundraising challenges arising from regulations like LTV, enabling the inflow of crypto funds to resolve such issues.

Core value: Transparency and decentralization

The ELYSIA team deeply aligns with the principles of blockchain transparency and decentralization. We firmly believe that to achieve genuine transparency and decentralization, these principles must be upheld not only at Layer 1 but also within DApps that drive tangible use cases. To promote these ideals, the ELYSIA team has implemented robust governance structures within each protocol, ensuring decentralization in DApps. Furthermore, they disclose contract information to users, thereby enhancing overall transparency.

Implementation of Governance

During Q3-Q4 of 2021, the ELYSIA team successfully launched the ELYFI forum and introduced on-chain governance through Tally. However, in early 2022, we strategically transitioned from Tally to the Dapp governance voting platform, Snapshot. This switch was implemented to reduce barriers to multi-chain adoption and voting, making the process more accessible.

Furthermore, in Q4 of 2022, we opened the ELYSIA Forum and integrated it with Snapshot, offering users a comprehensive and efficient voting mechanism.

Voting procedures play a crucial role in tokenizing real-world assets and approving loans. The creation of tokenized assets or loan transactions is contingent on the successful passage of the vote. The team utilizes Snapshot as an off-chain governance system to ensure a decentralized approach. To bring the voting results on-chain in a decentralized manner, we employ a plug-in function called SafeSnap.

ELYSIA DAO LLC

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ELYSIA addresses the challenge of asset ownership in a DAO when investing in real-world assets by implementing a solution that involves RWA tokenization and the establishment of a DAO corporation. The decentralized organization, DAO, is recognized as a corporation through the DAO corporate system. This innovative system is being implemented in Wyoming, Tennessee, the United States, and the Marshall Islands. By adopting this model, a DAO corporation can own real-world assets and generate RWA tokens backed by these assets. Consequently, these tokens hold both value and legally binding power on and off the blockchain. This approach effectively resolves the issue of asset ownership while preserving the benefits of a decentralized structure.

In a significant milestone, in 2022, the ELYSIA team achieved a first in Asia by registering a DAO LLC in Wyoming, USA. As part of this transition to an Algorithmic DAO LLC, the smart contract (System Core) of the DAO LLC was designed to enable seamless tracking and verification of the RWA tokens issued by ELYSIA.

Publishing Contract Addresses

The recent incidents involving undisclosed crypto fund management have had a significant impact on numerous crypto investors. The main concern at the heart of this issue is the lack of disclosure regarding wallet and crypto flow information. When investors are denied access to this crucial data, they cannot monitor the movement of funds and verify the specifics of where and how their investments are being utilized. Consequently, they become susceptible to various operational risks.

At ELYSIA, we place a high value on transparency, considering it a fundamental principle of our service. In our Dapp UI/UX design, our foremost priority is to disclose contract addresses. This ensures that (potential) users can trace and validate the flow of crypto funds. By linking every liquidity pool with its corresponding contract and related Block Explorer link, we empower users to confirm the reliability of a DeFi platform before providing liquidity. Furthermore, after supplying liquidity, investors can continuously track the destination wallets of their funds, enabling them to stay informed and make informed decisions.

Objectives of Participating in the Klaytn Governance Council

  1. Leading the Growth of Klaytn’s RWA Ecosystem: As a representative Real World Asset (RWA) tokenization project, ELYSIA aims to advance the RWA tokenization industry. With Klaytn’s expressed commitment to the development of RWA tokenization, our participation in the Klaytn Governance Council aims to collaborate closely with the Klaytn community. Through our expertise and experience in dealing with real assets, we seek to contribute actively to initiatives that foster the growth and adoption of RWA tokenization within the Klaytn ecosystem. Our objective is to create a transparent and secure RWA ecosystem, benefiting all participants in the Klaytn network.
  2. Enhancing Accessibility and Usability for Korean Users: ELYSIA has diligently built an RWA ecosystem targeting real assets and users in Korea. Joining the Klaytn network presents an opportunity to improve accessibility and usability for Korean users. As a member of the Klaytn Governance Council, we aim to collaborate with the Klaytn community and contribute to developing user-friendly tools, interfaces, and educational resources. By doing so, we aim to facilitate a seamless experience for Korean users to engage with the RWA ecosystem.
  3. Collaboration with RWA-related Institutions and Partners: With extensive experience in RWA-related business, ELYSIA has established cooperative relationships with various institutions and partners within the industry. As a member of the Klaytn Governance Council, we seek to strengthen further these collaborations with financial institutions, regulatory agencies, and industry partners. We aim to foster a collaborative environment, working together to establish regulatory frameworks, compliance standards, and industry best practices that promote adopting RWA technology in the traditional financial market.
  4. Promoting Global Awareness and Adoption: Leveraging our position as a global leader in the RWA field, ELYSIA aims to raise awareness and promote the global adoption of the Klaytn network. We intend to showcase the capabilities of the RWA industry within the Klaytn ecosystem, attracting users, investors, and businesses worldwide through strategic partnerships, educational initiatives, and marketing campaigns. Our ultimate goal is to expand the influence and reach of the Klaytn network, generating new business opportunities in the process.

3. Your commitment to the Klaytn Community

Plan to Boost Klaytn KLAY Demand

  1. Onchain Influx of Real Assets: ELYSIA’s primary objective is to facilitate the on-chain liquidity of real assets by tokenizing a diverse range of them and integrating them into the Klaytn network. Through this initiative, we aim to create an RWA ecosystem within Klaytn, where RWA tokens (real asset tokens) can be efficiently traded and invested in. By providing attractive investment and trading opportunities for various real assets, we intend to stimulate the demand for KLAY tokens among users who seek exposure to these assets within the Klaytn ecosystem.
  2. Boosting KLAY Demand through RWA DeFi Activation: ELYSIA is focused on establishing a robust DeFi ecosystem based on RWAs within the Klaytn network to boost KLAY token demand. Our RWA DeFi platform will offer stable and profitable investment and financial products to Klaytn users. Through services such as loans, deposits, and liquidity provision with RWA tokens as collateral, we aim to activate the RWA DeFi sector in the Klaytn ecosystem, thereby generating increased demand for KLAY tokens.
  3. Attracting New Users through the Influx of Elysia Ecosystem Users: With an existing user base of approximately 100,000 users within the ELYSIA ecosystem, we plan to attract and introduce these users to the Klaytn ecosystem. By facilitating their seamless transition and exposure to ELYSIA’s services and opportunities within Klaytn, we seek to induce an influx of users into the Klaytn network. This strategic move is intended to contribute to the overall activation and growth of the Klaytn ecosystem.

Through these proactive measures and activities, ELYSIA aims to significantly contribute to the expansion and development of the Klaytn ecosystem. By expanding the Klaytn community and fostering a robust demand for KLAY tokens, we envision a thriving ecosystem offering diverse opportunities for users and stakeholders.

Klaytn Decentralized Governance Activation Plan

  1. Providing specific ideas for strategic goal implementation: The ELYSIA team is well-equipped to directly contribute to Klaytn’s ‘Open Governance’ objectives. Leveraging our deep understanding of blockchain and Real-world Assets (RWA), we can actively propose and advocate for successfully implementing RWA tokenization on the Klaytn mainnet. By presenting concrete proposals, we aim to drive mass adoption of Klaytn, diversify financial risks, and enhance overall transparency within the ecosystem.
  2. Participating in GC sectional committees to provide expertise: As part of Klaytn’s ‘Open Governance’ strategy, the formation of small committees with specialized expertise is planned. Given our team’s extensive knowledge and experience in RWA and blockchain tokenization, we are well-positioned to contribute as valuable members of these committees. Through active involvement in decision-making processes related to specific topics, we can enhance the transparency and efficiency of governance within Klaytn.
  3. Activating the Klaytn ecosystem with RWA tokenization: ELYSIA’s unique contribution to activating the Klaytn ecosystem lies in our expertise in RWA tokenization. By converting tangible assets into digital tokens, we empower investors to manage and trade these assets within the Klaytn network efficiently. This initiative is instrumental in driving mass adoption of Klaytn and aligns with the strategic objectives of ‘Open Governance.’ Additionally, our innovative tools and processes will play a crucial role in supporting the governance framework of Klaytn.

Through active participation and concrete contributions, the ELYSIA team aims to play a key role in advancing Klaytn’s decentralized governance. We strive to enhance the ecosystem’s transparency, efficiency, and overall success by leveraging our expertise and promoting RWA tokenization.

4. Your plan for securing 5 million KLAY: [each GC member should stake a minimum of 5 million KLAY to their consensus node. Please explain how you will secure 5 million KLAY]

  1. Securing KLAY through purchase or swap using ELYSIA foundation funds: To ensure a reliable and direct acquisition of the required KLAY, we plan to utilize the resources of the ELYSIA Foundation. By purchasing or swapping KLAY tokens, we demonstrate the foundation’s strong belief in the growth and success of the Klaytn ecosystem. This strategic approach reinforces the stability and security of the Klaytn network and signifies our commitment to investing directly in the project’s continued development.
  2. Securing KLAY through supporting Klay Liquid Staking Service: As an additional method of securing the necessary KLAY, we intend to support Klaytn’s Liquid Staking service. By participating in this service, we can borrow KLAY from other users, fulfilling our obligations as Governance Council members while paying a fair price. This approach benefits the Klaytn community by providing returns to KLAY holders, promoting active community engagement, and simultaneously allowing us to acquire the required KLAY. This collaborative effort further strengthens our confidence in the growth and potential of the Klaytn network.

Through these prudent and strategic methods, we aim to secure the essential KLAY resources, uphold our responsibilities as a Governance Council member, and actively contribute to the success and advancement of the Klaytn ecosystem.