ELYFI Governance

What is ELYFI Governance?

ELYFI governance is a decision-making method that decentralizes the ELYFI ecosystem. Anyone can discuss in community channels such as forums and participate in voting through voting contracts. The ELYFI ecosystem changes and develops through the discussion and voting of the governance participants.

Why do we need governance in ELYFI?

ELYFI seeks to operate "decentralized" under the "ELYFI Protocol (rules)". In order to break free from being run by the arbitrary decision of a particular group, ELYFI must be run and managed by people who agree with and empathize with its values. And for this, a consensus decision-making method is needed so that governance participants can directly or indirectly change ELYFI. That is 'Governance'.

Currently, ELYFI governance is in its infancy and there are insufficient participants to achieve sufficient decentralization. But ultimately, ELYFI will be operated and developed solely through consensus among the governance participants. To this end, we plan to continuously improve governance together with the participants.

What can be decided through governance?

Governance participants can decide everything related to the ELYFI protocol and governance. ELYFI Protocol is a blockchain-based decentralized asset-backed loan protocol. Unlike the existing DeFi, it provides a loan service with real-world real-world assets as collateral, and the funds come from virtual assets deposited in ELYFI. In this regard, the governance is responsible for operations and risk management during the process from liquidity supply to loan execution. For the development of the ELYFI protocol, the existing method may need to be improved, and new functions and logic may be added. These decisions can be proposed and reflected through governance. Specifically, the following items can be determined through governance:

• Base interest rates on deposits and loans

• Whether money pool is added or removed

• Whether collateral types are added or removed

• Whether collateral is accepted

• Changes in governance decision-making methods, etc.

Decision-making on the above is made by a large number of participants, not by a particular selected group.

Composition of ELYFI Governance

ELYFI Governance consists of Off-chain Governance and On-chain Governance. The former is governance that is not connected to the blockchain, and the latter is connected to the blockchain. In general, decision making is divided into a 'discussion and poll' process and a 'final decision' process. In ELYFI governance, discussion and opinion polls are conducted off-chain, and the final decision-making process, voting, is conducted on-chain.

Off-chain governance can be participated in ELYFI Forum. On-chain governance can participate through related contracts, and a website where you can participate more easily will be opened soon.