Two-part Synergy

Synergies that Offset Risk

Lending yields and funding rate farming are both strong, low-risk sources of return. However, the real power lies in combining them into a unified engine; this is the core principle behind Elemental Lend’s design.

Funding rate farming performs exceptionally well in bull markets, yet it struggles during prolonged downturns. When markets weaken, funding rates often turn negative, generating steady losses for those who persist with the strategy.

A notable example was UXD, an early Solana project launched in January 2022 that popularized the funding rate farming approach. However, the severe 2023 bear market proved too punishing; despite attempts to pivot, UXD eventually shut down.

Conversely, lending pools provide stability but rarely deliver outsized returns. Even in bull markets, yields rise modestly, meaning depositors may miss higher opportunities elsewhere - a subtler but very real risk in the form of opportunity cost.

By blending both strategies within Elemental Lend, depositors gain the best of both worlds:

• The stability of lending yields as a foundation; and

• the upside potential of funding rate farming during favorable market conditions.

Elemental Lend achieves what neither strategy can alone: a structure where strength in one offsets weakness in the other. The result is a sustainable source of yield regardless of market conditions.