Elemental USDG Optimizer is live on YieldCompass Here are the main risk takeaways from our assessment.
How it works:
Depositors supply USDG and receive vault shares that appreciate as borrowers pay interest across Kamino markets. An active curator (Elemental) reallocates capital across the different markets at its discretion under an aggressive mandate.
Main risk factors:
1/ Infrastructure:
Built on Kamino's lending + vault infrastructure (5 auditors, 20 audits, zero exploit history, zero bad debt, 5-of-10 multisig, 12h timelock).
Pricing runs through Scope, Kamino's oracle aggregator (Pyth, Switchboard, Chainlink, Redstone), with TWAP/EWMA smoothing and price bands. A robust setup.
As in all of DeFi, residual smart contract risk exists - but Kamino is one of the most battle-tested DeFi protocols on Solana.
2/ Curator discretion
The Aggressive mandate lets @elementaldefi shift into similarly novel markets at any time. This can drive higher yield volatility, and potentially higher risk.
Elemental Fun