Elemental

Elemental is an on-chain fund on Solana: users deposit USDC or SOL into vaults whose capital is allocated across funding-rate arbitrage, stablecoin liquidity, lending and lending loops. It fixes a yield for each five-day epoch, using a compound fund to buffer swings between epochs and a separate insurance fund to absorb part of any loss from a protocol exploit.

Vaults are priced by shares, with deposits activating at the start of an epoch and withdrawals requiring a full epoch so complex positions can be unwound; the fixed-yield side is rebalanced manually. Each epoch's yield is fixed at its start, with returns above the agreed level flowing into the buffer and any shortfall covered by the buffer and insurance fund, while strategy weights are reset quarterly on volatility and correlation. After the April 2026 Drift exploit hit its vaults, Elemental marked down affected assets by 87.51% in the SOL vault and 62.10% in USDC Lend, publishing the transaction-level history on 4 April.