Elemental, a Solana-native DeFi fund with a three-year track record of delivering disciplined returns is launching its first non-stablecoin strategy, an OnRe-focused vault anchored by tokenized reinsurance yields using OnRe’s ONyc token.
Elemental has built its reputation on conservative capital deployment, transparent operations, and consistent performance through market cycles. ONyc provides 8-10% uncorrelated returns from dual-licensed reinsurance underwriting. Together, they deliver institutional allocators access to sophisticated capital-efficient strategies on stable RWA yields, removing the need to manage execution, oversight, or operational complexity.
DeFi Made Simple
Founded in 2022 during peak market dislocation, Elemental launched with $1,000 and a contrarian thesis: make DeFi investing simple through disciplined risk management rather than headline-chasing yields. That philosophy has remained unchanged as the fund scaled.
The operational track record reflects this approach:
- Continuous operation since 2022 with zero security incidents
- Performance sustained through FTX collapse, Wormhole exploit, and USDC depeg
- Minimum 10% APR maintained on stablecoins and SOL throughout bear market conditions
- Deliberately capped capital intake, prioritizing deployment quality over TVL metrics
Most DeFi protocols during this period either pursued aggressive, unsustainable yields or collapsed entirely under systemic stress. Elemental did neither. The fund maintained its core operating principles: capital allocation discipline, fully on-chain deployment, zero fees, and systematic risk reduction. Growth metrics remained subordinate to risk-adjusted returns – a foundational stance that distinguished Elemental as quietly consistent, structurally conservative, and designed to perform across market environments.
“In Web3, survival is the strategy. At Elemental, we focus on minimizing risk rather than maximizing gains. In a yield-rich environment, restraint and discipline are all you need to outperform,” said Moo, Founder of Elemental.
The Structural Match: Conservative Meets Conservative
ONyc represents a structurally distinct yield primitive, delivering stable returns sourced from real-world reinsurance underwriting – fundamentally uncorrelated to crypto market volatility, liquidity cycles, or reflexive leverage.
For sophisticated allocators, this solves a persistent portfolio construction challenge: how to achieve stable, mid-single-digit-plus yields without directional exposure or reliance on traditional DeFi return drivers.
While Elemental has built its track record on DeFi-native strategies, ONyc introduces a conservative, uncorrelated source of yield; this allows Elemental to expand its offering with a complementary risk profile. Elemental deploys ONyc across a range of proven protocols, applying systematic looping and yield-enhancement techniques to improve capital efficiency, while diversifying deployments to reduce concentration risk.
Capital intake is capped based on deployment quality rather than TVL optimization, ensuring favorable risk-reward characteristics. This creates natural scarcity for allocators seeking institutional-grade execution on tokenized reinsurance exposure. Vault depositors earn OnRe Points, further rewarding capital that contributes to OnRe’s growth.
“Elemental integrating ONyc is redefining how institutional capital accesses tokenized RWAs. By combining ONyc’s resilient, reinsurance-backed returns with a disciplined, risk-aware deployment, Elemental is building strategies that are durable, transparent, and scalable, giving allocators a clear path to participate in these markets with confidence,” said Ayyan Rahman, Co-Founder and CGO of OnRe.
Infrastructure Maturation for Institutional Allocators
As traditional finance migrates onchain, the ecosystem requires more than token issuance infrastructure. It requires active managers capable of translating tokenized assets into professionally managed products that meet institutional execution standards.
This ONyc adoption represents that evolution: specialized onchain asset managers with proven track records deploying capital through sophisticated strategies anchored by tokenized real-world assets.
For institutional allocators, these vaults provide enhanced, uncorrelated reinsurance-backed yields professionally managed through full market cycles, with added upside as OnRe scales. A match made in heaven – designed to drive capital efficiency and disciplined yield management for sophisticated OnRe exposure.
Explore the vault here.
Important
ONyc is issued by On Re SAC Ltd. Primary market access is restricted to eligible, KYC‑verified investors. ONyc may also be accessible via decentralised protocols such as the Elemental ONyc vault, which OnRe does not oversee or facilitate. Capital at risk.
