Sommelier broadens its multichain reach through collaboration with the Axelar Network, unveiling flexible DeFi vaults on Arbitrum.

Market-adaptive DeFi vault platform Sommelier Sommelier has announced its extension into Ethereum layer 2 platforms, leveraging advanced technology for better interactions and results. Axelar ’s General Message Passing This rollout includes the launch of the Real Yield ETH vault, a pivotal move in Sommelier's quest to make DeFi opportunities more accessible to all. Arbitrum One General Message Passing (GMP) is a cutting-edge tool that allows developers to create applications that operate across different blockchain networks, facilitating easy cross-chain interactions. To put it simply, Axelar GMP enables developers to combine functionalities from multiple chains, much like building a structure with Lego pieces.

According to Sommelier, with more than $60 million currently invested in its vaults on the mainnet, expanding into layer 2s opens up doors to connect with a wider audience and explore new yield-generation methods.

The co-founder of Sommelier mentioned to Metaverse Post, \"The rapidly growing DeFi environments on layer 2 networks like Arbitrum are ripe with yield opportunities. Our vaults act as a yield optimization layer, granting users non-custodial access to advanced strategies that dynamically allocate assets as new chances arise. Low gas fees on layer 2 also enhance accessibility for users of Sommelier.\" Ethereum The co-founder further elaborated, stating, \"All of this functionality stems from an innovative architecture that utilizes Sommelier’s Cosmos application chain alongside Axelar’s GMP to relay rebalancing instructions to vaults across various chains.\"

This new vault signifies Sommelier’s foray beyond the Ethereum mainnet. Following the successful performance of its Ethereum counterpart, which has regularly outshone holding stETH, the Real Yield ETH vault on Arbitrum will adopt similar dynamic strategies. Kristi Põldsam These strategies involve contributing to liquidity on decentralized exchanges and executing risk-mitigated leveraged positions involving staked ETH.

Sergey Gorbunov, Co-Founder of Axelar protocol and CEO of Interop Labs, commented, \"The expansion of Sommelier into Layer 2 networks using Axelar GMP exemplifies an innovative multichain architecture that supports one of the most forward-thinking applications in the DeFi space. This collaborative infrastructure equips users on any blockchain with non-custodial access to intricate DeFi strategies.\"

The Real Yield ETH vault on Arbitrum One The Real Yield ETH vault on Arbitrum is designed to pursue leveraged staking and concentrated liquidity provider positions concerning ETH liquid staking tokens and ETH trading pairs on decentralized exchanges. According to Sommelier’s Põldsam, these scalable strategies have elevated the Real Yield ETH vault on the mainnet, making it the top-performing ETH product in DeFi, with its total value locked reaching tens of millions.

Empowering User Engagement in the DeFi Landscape

Sommelier aims to boost users’ abilities to navigate and seize opportunities in the ever-changing world of decentralized finance. Instead of vaults that stick to rigid strategies, Sommelier provides vaults with the flexibility to adjust their asset allocations as market conditions evolve and new possibilities emerge. Moreover, new strategies can be integrated into vaults over time.

Põldsam stated that a primary challenge in this expansion has been the creation of the technical framework required to enable the exceptional capabilities of Sommelier vaults. Looking ahead, Sommelier intends to utilize the Axelar GMP network to roll out vaults on various Layer 2 chains, promising to introduce further innovation and ease of access in the space.

Integrating Axelar GMP has proven to be vital for facilitating this expansion, she highlighted. \"We envision Sommelier as more than just a platform for attractive DeFi yields. We’re working to democratize participation in crucial market functions that have traditionally been controlled by a select few.\"

Sommelier’s expansion onto Arbitrum Even now, the flagship Real Yield ETH vault on Ethereum Mainnet has emerged as the largest liquidity provider for ETH liquid staking tokens, achieving over $5 billion in swap volumes in just the past six months. The vaults associated with Sommelier are also actively involved in liquid staking and leveraged staking activities.

Põldsam remarked, \"As a result, lending protocols, decentralized exchanges, and liquid staking/restaking frameworks are enthusiastic about collaborating with Sommelier. We are partnering closely with Layer 2 protocol developers and teams working on DeFi applications, as well as the larger DeFi community, to better understand needs and openings throughout this dynamic landscape. On the Mainnet, several Sommelier vaults are specifically tailored for certain protocols or assets, including Lido, Stader, Swell, Ether.fi, FraxLend, and Aave’s GHO stablecoin. A significant aspect of our multichain progression centers around collaborating with and supporting DeFi protocols in similar fashions.\"

She expressed that the Real Yield ETH vault on Arbitrum is merely the starting point for their endeavors. The ongoing inefficiencies present in this ecosystem provide a unique chance for Sommelier's vaults to capitalize on to enhance yield generation and improve liquidity within L2 DeFi. DeFi space.

Anticipate a wide array of additional vaults across major Layer 2 networks to be deployed in the coming weeks and months.

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Victor serves as the Managing Tech Editor/Writer at Metaverse Post, covering topics such as artificial intelligence, cryptocurrency, data science, the metaverse, and cybersecurity in the enterprise sector. With nearly five years of experience in the media and AI field, Victor has worked for leading media outlets including VentureBeat, DatatechVibe, and Analytics India Magazine. As a Media Mentor at esteemed universities such as Oxford and USC, and holding a Master’s degree in data science and analytics, he is passionately dedicated to staying informed about emerging trends.

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