A pioneer in real-world asset tokenization, Elysia has been bringing RWAs on-chain since 2018 through their Elyfi RWA DeFi platform. The project started out on Ethereum, and as their popularity and user base grew, they realized that there were various limitations on Ethereum that would significantly impede their growth.
First and foremost was Ethereum’s notoriously high gas fees, which made it prohibitively expensive for users to access yield on their Elyfi DeFi platform – especially for users with smaller deposits, where the gas fees would make up a large fraction of their yield. As fractionalization is one of the key features of RWA tokenization, Ethereum’s high gas fees meant that Elysia could not fully deliver on the benefit of increasing accessibility to the broader market, ultimately limiting the growth of their user base.
The second factor was the unpolished user experience. While crypto veterans had no issues navigating the typical Web3 user journey, Elysia wanted to allow anyone and everyone who wishes to invest in RWAs to be able to do so – but these potential users were neither ready nor willing to deal with seed phrases, the hassle of maintaining a token balance for gas, or the minutes of nail-biting uncertainty while waiting for transactions to finalize.
It was clear as day that they needed to branch off to another chain – one that would allow them to deliver on the full benefits of fractionalization and tokenization and streamline the user experience, to create an RWA DeFi service that is accessible and intuitive for the general public.
Klaytn and Elysia: A match made in Hanguk
Among the tokenized assets available on Elyfi are South Korean real estate, which are attractive investments due to their relatively higher yield and capital appreciation potential. However, rapidly rising property prices also meant that investing in real estate was quickly getting out of reach for South Koreans themselves – which meant a growing opportunity for domestic adoption of Elysia’s tokenized assets.
This was where Elysia’s search for an alternative chain led them to Klaytn, which they quickly recognised as their ideal chain because of:
Effortless platform integration
With any multi-chain integration, development costs and time are among the biggest considerations – and Klaytn being Ethereum-equivalent meant that Elysia’s developers could integrate Klaytn without having to make major modifications to Elyfi’s code or the lengthy testing and bug-fixing that would have followed any major code change.
This allowed Elysia to quickly integrate Klaytn with minimal effort, freeing up the team’s resources to focus on improving their service and introducing new RWAs to their platform.
Access to virtually every South Korean resident
Given Elysia’s goal of creating a platform where the broader population can partake in RWA investment opportunities that they otherwise do not have access to via traditional financial platforms, having Elyfi be seamlessly accessible to the general public was one of their key requirements.
Klaytn was the clear choice in this regard, thanks to Klip – a Klaytn wallet built into Kakaotalk, the dominant messaging app found in 93% of smartphones in South Korea. Additionally, being a blockchain project of Korean origin also meant that Klaytn is more well known than Ethereum to the South Korean general public.
Through Klaytn integration, Elysia immediately gave virtually every South Korean resident a simple and convenient way to access their Elyfi RWA platform using an app that they are all already familiar with and use daily.
One step closer to RWA mass adoption
Since Elyfi’s integration with Klaytn in late July 2023, the RWA platform has seen the successful launch of an e-commerce accounts receivables pool on Klaytn, which provided investors with 8% APR and was almost instantly filled upon launch.
Subsequently, Elyfi also launched a US treasury note pool that has since reached over US$300,000 in size.
Moving forward, the Elysia team intends to continue launching more RWA pools on Klaytn, making more assets accessible to the general public to invest in.
In ELYSIA, we believe in pushing the boundaries of real-world asset tokenization to create opportunities for everyone. Our journey on the ELYFI RWA DeFi platform started with a commitment to accessibility and user experience. Having this in mind and recognizing the challenges on Ethereum, we found a perfect match in Klaytn. With effortless platform integration and the reach of Klip wallet to virtually every South Korean resident, Klaytn has been important in our mission to make RWA investments seamless and intuitive. The successful launch of e-commerce and the US treasury note pool on Klaytn marks just the beginning. We’re excited to continue our journey, bringing more assets to the public and contributing to RWA mass adoption.– Yoon Kim, CMO of Elysia
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