> For the complete documentation index, see [llms.txt](https://docs.elemental.fund/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.elemental.fund/strategies/introduction-to-strategies.md). # Introduction to Strategies ### Making Complex DeFi Strategies Simple At Elemental, we research and build infrastructure that allows users to participate in complex DeFi strategies, staying true to our vision of making DeFi simple. Within each vault, proprietary algorithmic systems support the execution of specific strategies designed to earn competitive yields for users. These systems help automate key parts of the strategy process, including position management, execution optimization, and ongoing monitoring. ### A Range of Strategies, Each With Different Risk Profiles Elemental supports multiple vaults, each built around different DeFi strategies and sources of return. Every strategy carries its own risk profile, market sensitivity, and operational considerations. Users should conduct their own research and decide which vaults they are comfortable participating in, based on their own objectives, risk tolerance, and desired level of portfolio diversification. Diversification is important because no single strategy performs well in every market environment. For example, funding rate strategies may be highly productive during strong bull markets, but can become flat or even negative during quieter or bearish periods. By participating across different vaults and strategies, users may reduce concentration risk and create more balanced exposure across changing market conditions. ### Staying Nimble Without Chasing Hype The Web3 landscape changes quickly, and Elemental remains open to new opportunities as they emerge. However, we do not believe in chasing every trend or launching vaults purely because a narrative is popular. Our approach is to balance exploration with discipline. We assess opportunities through market data, first-hand DeFi experience, protocol relationships, and internal research. This allows us to evaluate whether a strategy is sufficiently robust, liquid, and sustainable before making it available through our infrastructure. As a result, Elemental may not always support the latest hype cycle or the highest advertised yield. Our bias is toward risk minimization, reliable execution, and long-term resilience rather than speculative yield maximization. ### Our Edge Is in Execution The following pages provide a non-exhaustive overview of the strategies that Elemental researches, builds infrastructure for, and supports through its vault systems. While many of these strategies can theoretically be attempted by anyone, our core advantage lies in how they are executed. {% hint style="info" %} For [funding rate](/strategies/funding-rate-farming.md) strategies, our proprietary algorithms are designed to enter, manage, and exit positions with minimal execution cost. In certain market conditions, execution itself may even contribute positively to performance. {% endhint %} {% hint style="info" %} For [liquidity provision](/strategies/provisioning-in-liquidity-pools.md) strategies, our systems aim to improve forecasting, capital positioning, and concentration management. This may allow vaults to capture yield more efficiently than less optimized approaches. {% endhint %} Across all strategies, Elemental focuses on execution quality, operational discipline, and careful strategy design. ### Built on Solana, Verifiable On-Chain Elemental operates exclusively on Solana. This allows vault activity to be executed and verified on-chain, giving users greater transparency into how strategies interact with protocols and how positions are managed. This on-chain structure reinforces accountability. It allows users to observe strategy behavior directly, rather than relying solely on off-chain reporting or opaque execution. We believe this transparency is an important part of building trust in DeFi infrastructure. ### Important Information All information provided in this document is for general informational purposes only. Nothing in this document should be interpreted as financial advice, investment advice, fund management services, or a recommendation to participate in any particular vault, strategy, or protocol. All DeFi activity involves risk, including smart contract risk, market risk, liquidity risk, oracle risk, protocol risk, execution risk, and potential loss of capital. Users are responsible for conducting their own due diligence and making their own decisions before deploying capital into any vault or strategy. --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://docs.elemental.fund/strategies/introduction-to-strategies.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. 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