Sommelier January Update

Sommelier made significant progress in the first month of 2023. A breakthrough stablecoin vault was launched, the Cellar smart contract architecture was upgraded and a new all-time-high in TVM was reached.

Real Yield USD

In less than a week after launch, the Real Yield USD strategy was able to gather over $2M in deposits from users eager for real yield from Aave, Compound and Uniswap. The vault’s first week performance was incredibly impressive generating 7.7% APY, largely driven by expertly LPing on the USDC-USDT pool on Uniswap V3. We’re eager to see how this vault grows and performs over the coming months. You can track the progress yourself here.

Smart Contract Upgrade

Real Yield USD is possible thanks to Sommelier’s recent smart contract upgrade to Cellars V2. One of the main benefits of this upgrade is that strategists can now use multiple protocols within the same strategy. This allows strategists to create more robust strategies that can thrive in changing market conditions. As an example, Real Yield USD can shift its strategy position to Aave and Compound if LPing on Uniswap becomes too volatile. The ability to use the appropriate protocols given the market condition will greatly benefit users. You can read more about the Cellars V2 upgrade here.

ATH in Sommelier TVM

January also marked new all-time-highs in TVM at roughly double the previous high. This was driven in part due to several $100k+ deposits into the Real Yield USD strategy. The ability for Sommelier to attract larger amounts of capital is encouraging and a trend we look to build upon. You can track the progress yourself here.

Community Events /AMAs

Aside from product releases, there were a number of community events and information sessions.

• 0xResearch Podcast with our co-founder Zaki and the CEO of Seven Seas

• Real Yield Performance Update

What’s next?

• SOMM staking rewards launch

• New strategies in the pipeline

• Launching multi-chain

About Sommelier

Sommelier is an asset management protocol, built on the Cosmos SDK, that enables actively managed DeFi vaults on Ethereum. Vaults can do portfolio management, trade long-short, borrow-lend, or even farm. Additionally, Sommelier’s architecture allows independent strategists to leverage the power of off-chain computation by bringing algorithmically managed strategies on-chain. In doing so, Sommelier vaults can dynamically adapt to market conditions which provides enhanced earnings opportunities and risk mitigation to vault users whether they be individuals, institutions, protocols or DAOs . All vaults are enabled by audited smart contracts and controlled by protocol governance.

Sommelier was cofounded in 2020 by a prolific team of Ethereum and Cosmos developers including Zaki Manian and Kristi Poldsam. The protocol is currently in mainnet and actively seeks new contributors and community members.

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