Research Summary

The research report focuses on Sommelier Finance, a Cosmos appchain that provides strategists with the tools to deploy dynamic yield strategies. It optimizes the Ethereum DeFi experience, allowing offchain compute while users maintain self-custody control of their assets. The report highlights Sommelier’s “Real Yield” vault strategies, including RYUSD and RYETH, which perform tick optimization and lending optimization across multiple protocols. The report also discusses the potential profitability of Sommelier based on AUM and performance.

Actionable Insights

  • Sommelier’s Potential: With its ability to deploy dynamic yield strategies, Sommelier could potentially bring institutional-grade strategies onchain.
  • Real Yield Strategies: Sommelier’s RYUSD and RYETH vaults perform tick optimization and lending optimization, providing competitive yields.
  • Profitability: The profitability of Sommelier depends on AUM and performance, similar to a traditional finance fund.

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