Element Finance

Fixed & variable yield

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Element is an open source protocol for fixed and variable yield markets. It enables users to seek high fixed yield income in the DeFi market. Users can access, via the ecosystem and existing AMMs at a discount without being locked into a term, allowing the exchange of the discounted asset and the base asset at any time. The fixed rate income can be secured with the exchange of any major base asset. The Element protocol does not require trusted intermediaries and allows for fast and efficient trading of fixed and variable yields.

How it uses Balancer protocol

Element Finance uses Balancer’s custom AMM functionality to enable markets for assets that converge in value over time. Plugging into the Balancer ecosystem allows users to swap fixed yield assets from any other major asset in the Balancer vault with the gas efficiency of multi-hop order routing.

“At Element Finance, we’re thrilled to be a launch partner of Balancer Protocol, utilizing what we believe to be the most innovative feature of Balancer V2. Element Finance needed to implement a custom invariant or trading curve but did not want to go through the technical overhead of forking or building our own AMM with custom logic.

We realized this route would get messy, require secure accounting logic, and generally reinvent the wheel. It would also isolate existing AMM liquidity from our protocol, limiting us from integrating or plugging into other pools or token pairs.

To avoid these issues, we chose to build on Balancer V2. Balancer V2 introduces customizable AMM logic, where developers can build different curves without having to worry about proxying through other exchanges, managing lower-level details, or security concerns.”

Paul VienhageLead Smart Contract Engineer, Element Protocol