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Element: Institutional Report

3 min readResearch

Element Finance: Abbreviated Introduction

Decentralized Finance (DeFi) is a fast-growing market segment. Total Value Locked (TVL) in DeFi, the most followed market metric, reached a level as high as $195 billion in relatively early stages. From basic protocols (such as lending/borrowing products) to more complexly structured DeFi projects, many innovative ideas entered the market as a natural result of an active community. The lucrative opportunities created by the DeFi market have attracted significant institutional interest and prompted a trend of institutional capital flow into DeFi.

Against this backdrop, Element Finance saw an underserved niche within the broader yield markets. When a DeFi user establishes a yield position, such as locking capital in a Yearn vault or an ETH2.0 validator, they cannot access further market opportunities. Element Finance offers the same high yield opportunities with the added value of capital efficiency, market liquidity, and reduced use costs.

At its core, the Element Protocol splits base asset positions into two different fungible tokens, namely Principal Tokens (PT) and Yield Tokens (YT). Element is harnessing the composability of Ethereum and its team’s deep expertise in the ecosystem. The team’s product-first approach has already allowed them to accrue the highest amount of TVL amongst its closest competitors.

Element is an experienced team of blockchain and FinTech practitioners. The team is growing with additional resources supplied to it. Element Finance aims to become an open, autonomous, community-governed protocol.

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Disclaimer

This Report is for informational purposes only and/or all or any of its content thereof, should not, may not, and will not be taken to constitute, either as a whole or in part, any investment advice or recommendation or similar, regulated, or authorized advice, and D-Core by producing, disseminating, giving away, or making available this Report does not, should not, may not and will not be taken to advise on investments, or carry out any similar activity, or any regulated activity or any other authorized activity. D-Core is not authorized by the Financial Conduct Authority or by any other competent EU or elsewhere or otherwise competent authority to carry out any regulated activities and/or any activities within the scope of these authorities’ competence.

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