Operational Logic and Algorithm Design

Smart Routing Algorithm

Elemental’s smart routing algorithm continuously analyses yields and price impact across all supported pools every 30 seconds. When certain thresholds are met, it automatically rebalances deposits to optimize returns. If not, it maintains existing allocations and only rebalances after 10 minutes.

This dynamic timing strikes an optimal balance between minimizing rebalancing costs and maximizing yield efficiency - ensuring that capital is always working in the most productive configuration without unnecessary transaction overhead.

Sub-vaults

In protocols such as Kamino, dozens of lending pools exist. Running a single global algorithm across all of them would be computationally expensive, as the calculations grow exponentially with each additional pool.

To address this, Elemental employs a main and sub-vault architecture. Each sub-vault operates within a specific protocol and runs its own local optimization algorithm. The main vault’s algorithm then coordinates only at the protocol level, deciding how to allocate funds among the various sub-vaults.

This layered approach dramatically improves efficiency, allowing Elemental to scale efficiently.

Redundancies

Because the smart routing algorithm must operate continuously, Elemental maintains three RPC endpoints to ensure uninterrupted performance. If one endpoint experiences downtime, the next takes over automatically - with an additional backup ready if needed.

While this setup cannot make the system completely fail-safe, it provides a strong layer of operational resilience. Even in the unlikely event that all algorithmic processes pause, funds remain safely within their respective protocols until the system restores and rebalances them.