ONyc Vault

Overview

The ONyc Vault marks a significant step forward in Elemental’s evolution. For the first time, we are moving beyond pure stablecoin strategies and into real world assets (RWA).

It also represents our first true multi partner deployment. To bring this vault to life, we collaborated with OnRe, the issuer of ONyc, alongside leading Solana protocols including Carrot, Kamino and Loopscale. This integration reflects both the depth of the Solana ecosystem and the power of composability.

More importantly, this partnership strengthens the portfolio construction of Elemental itself.

OnRe provides an uncorrelated yield source relative to traditional on-chain strategies. In practical terms, this means Elemental depositors are no longer exposed to a single yield regime. By introducing RWA backed yield into our ecosystem, we reduce dependency on purely crypto native flows and add structural diversification.

For those interested in the theoretical foundation behind this approach, you can read more about the Efficient Frontier.

Diversification is not about chasing more yield. It is about building resilience.

Strategy

Risk management remains central to our philosophy. Deploying across multiple protocols reduces concentration risk and avoids overexposure to any single venue.

Looping will serve as the primary efficiency enhancer at launch. However, we will not pursue maximum theoretical leverage. We deliberately cap leverage at levels where the risk reward profile remains compelling and defensible.

Higher yields naturally introduce higher risk. Beyond a certain point, incremental return does not justify incremental fragility. Our objective is not to extract every basis point. It is to deliver durable, repeatable performance.

As OnRe expands its integrations across Solana DeFi, the strategy set available to this vault will broaden. We will adapt accordingly, with continuous monitoring and disciplined adjustments to maintain an optimal balance between return and stability.

True to our ethos of making DeFi simple, users take a single action: deposit. Elemental manages the operational complexity behind the scenes.

Yields and Points

This vault introduces a dual yield structure.

Depositors benefit from ONyc’s native yield, alongside enhanced returns generated through Elemental’s DeFi deployment strategies.

In addition, we will track qualifying deposits for participation in OnRe’s points programme, ensuring users capture the full spectrum of potential upside associated with the ecosystem.

Vault Capacity

Elemental is a rare protocol that prioritises yield quality over TVL growth. Any experienced asset manager understands that scale can compress returns.

This vault will be no exception.

Capacity will be managed in coordination with OnRe and our DeFi partners. We will expand only when markets can absorb additional capital without materially diluting yields.

Discipline ensures longevity. Growth without discipline erodes edge.

Additional Reading

The Elemental Edge: https://www.onre.finance/blog/the-elemental-edge-when-resilient-rwa-yield-meets-risk-averse-onchain-deployment