A: From DeFi protocols across Solana. The Solana ecosystem is vast, and there are many yield and arbitrage opportunities. They are however in a constant flux, hold different risk profiles, and require close monitoring.
Q: Are the yields sustainable?
A: Since we derive yields outside of Elemental, they are sustainable so long as such sources exist. However, the number will fluctuate depending on what is available on Solana. We expect these numbers to shrink as the markets become more efficient, meaning that as more participants enter the market and capitalize on existing opportunities, the yield rates may decrease. Despite this, we constantly monitor the Solana ecosystem for new opportunities to maintain competitive yields for our investors.
Q: How are you able to give a fixed yield then?
A: We have a Compound Fund which also acts as a buffer. As we expect our revenue to fluctuate, we created this fund to absorb the volatility. For clarity, while the yield is fixed for each Elemental Epoch, the yield may be adjusted from epoch-to-epoch. However, we endeavor to make adjustments as infrequent as possible.
Q: Elemental Epoch?
A: An Elemental Epoch is a 5-day period used to manage and unwind positions for timely withdrawal payouts. View sample schedule: Elemental Epoch
Q: When can I deposit?
A: You may deposit anytime so long as the fund has available capacity. Note that your funds will be activated at the start of the next epoch.
Q: When can I withdraw?
A: You may initiate a withdrawal anytime. However, your funds will need to complete a full Elemental Epoch after your initiation request. For example, if you initiate a withdrawal on 4 Dec, you will need to wait for the full epoch (5 Dec - 10 Dec) to complete; your funds will be available on 10 Dec. This delay is necessary for us to unwind more complex positions that may require many days.
Q: Is Elemental's yield expected to drop over the long run?
A: Not necessarily, and most likely the opposite. We compound a portion of our gains. This means, all other things being equal (ceteris paribus), our yields should rise steadily over time.
Q: Can I lose money by investing in your funds?
A: Yes, all investments inherently carry risk. Despite our diligence in seeking the best risk-adjusted returns and diversifying our portfolio, unforeseen circumstances such as protocol exploits, token depegging, or bridge hacks could lead to losses. Nonetheless, our team continually monitors market conditions to minimize these risks as much as possible.
Q: What happens if the funds lose money?
A: In the unfortunate event of losses, Elemental has two backstops: 1) Insurance Fund 2) Compound Fund. These funds are the first line of defense to cover any losses. If these funds are inadequate, the remaining losses will be split pro-rata among all affected investors.
Q: What's the benefit for Elemental?
A: Elemental operates with a long-term vision of growth and sustainability. After we disburse yields, pay the Player 2 sales tax, execute $ELE buybacks, contribute to the Compound and Insurance Funds, the remaining profits are retained by Elemental. These resources support our ongoing operations and continual enhancement of our services.
Q: I'm interested, how do I join Elemental?
A: We're thrilled to have you onboard! Elemental is open to everyone. However, certain funds such as Aqueous and Granite require fund-specific NFTs for access. To get started, visit our platform at elemental.player2.world.