Sommelier, the automated DeFi portfolio management platform, announces that it has launched Ethereum DeFi strategy tokens “for the first time on Injective, a layer 1 Cosmos blockchain optimized for finance.”
Sommelier is a blockchain/DLT-based platform “built with the Cosmos SDK that executes advanced crypto portfolio strategies across multiple blockchains.” Effectively, users are able “to take part in sophisticated algorithmic trading strategies devised by leading institutions by simply deploying funds into strategy vaults.” The funds are then “utilized by smart contracts to make trades such as following ETH price trends.”
This new integration “marks the first time Ethereum trading strategies will be available to the broader Cosmos ecosystem, with three Strategy Tokens (SteadyETH, SteadyBTC and ETHBTCTrend) now listed across all exchange dApps built on Injective.”
Constructed by prominent trading firms Patache Digital (SteadyETH and Steady BTC) and ClearGate Capital (ETHBTCTrend) “with risk mitigation in mind during these volatile times, these listings are highly accessible with user-friendly features offered by DEXs on Injective, such as zero gas fees, limit orders and stop loss features.”
With a native, MEV-resistant order book matching engine, Injective’s ecosystem “has generated over $7 billion in cumulative transaction volume within its first year of mainnet, creating the ideal network for Sommelier and its rapidly expanding marketplace of strategies.”
Zaki Manian, Co-Founder of Sommelier, said:
“Strategy Tokens arriving on Injective is a showcase of the cutting-edge in non-custodial DeFi that’s being built in Cosmos. Sommelier has pioneered a new asset class with Strategy Tokens, and Injective’s order matching engine enables the most efficient DEXes available anywhere, so trading those tokens comes with dramatically reduced risk of slippage. There’s no reason that sophisticated strategies to capture ETH yields should only be available to whales. Strategy Tokens on Injective make them widely accessible in Cosmos.”
Active management has been “sorely missing in DeFi, leading individuals to seek out centralized institutions to manage their crypto assets.”
Sommelier closes this gap, “giving anyone the ability to access powerful trading strategies securely without giving away custody of their assets to the firms providing those strategies.”
Furthermore, every trade these strategies make “is transparently visible on-chain, giving users an additional measure of comfort.” The importance of this innovation is “readily apparent with a number of prominent custodial crypto platforms such as Celsius, BlockFi, and FTX/Alameda collapsing in recent months after opaquely trading customers’ crypto to their detriment.”
Injective Labs co-founder and CEO, Eric Chen remarked:
“Decentralized finance is taking a major leap forward with this integration as advanced algorithms become accessible for the masses. In the wake of the now notorious FTX collapse, DeFi continues to serve as a beacon of transparency and truth which Sommelier helps to further highlight with the deployment of strategy-focused assets on top of Injective.”
As more providers deploy strategies on Sommelier, the corresponding strategy tokens “are planned to launch on Injective.”
Additional opportunities are also being considered, “including the utilization of native modules on Injective such as the derivatives module to create perpetual pairs with strategy tokens.”
This would “lead to new leverage trading opportunities for strategies that were previously unavailable to the average user.”