You may have noticed most things have elements assigned to them, from mobs to weapons and armor. I am here to tell you all about it as best as I can explain!

There are 5 possible attributes applied to defence calculation:

Fire
Nature
Water
Shadow
Light

The interactions between them are as such (according to my own ingame tests)

Fire resists Nature
Nature resists Water
Water resists Fire
Shadow and Light resists the 3 elements above but not as much as them (for exemple, Fire halves Nature damage by 50% while Shadow and Light have roughly a 33% reduction) and are weak against eachother

While I cannot test the effect elements have with quivers (I'm a mage, not an arrow gal), as far as I researched, I found those effects:

Fire deals double damage to Nature enemies, Fire wands apply a DoT (damage over time) effect that can be stacked (not infinitly, I don't have an exact number but I'd say 3 to 5 stacks).

Water deals double damage to Fire enemies, Water wands apply a slowing effect (non-stackable)

Nature deals double damage to Water enemies, currently the effect it has is unknown but seeing as between Nature, Fire and Water wands, the Nature wand seems to deal the most amount of raw damage.

Shadow and Light deal double damage to eachother and seem to deal 50% extra damage to non elemental enemies while also dealing no extra damage to Fire, Water or Nature (I still have to test some more)

As far as defences are concerned, if you don't know what element you will be facing, having shadow or light seems like the safest choice, but if you aim for a boss or specific monsters, using the element that directly counters them is the best option.

For offense, always use the element effective against your target, thats just a given.

As I previously stated, this guide is based on ingame testing, so if you find anything new, be sure to message me and I'll add it and credit you (obviously)!