Automated DeFi portfolio management platform Sommelier launched the first Cellar, or community-governed, dynamic investment strategy vehicle, on the platform. The Cellar is active on Aave to leverage machine learning to move assets between several stablecoin lending positions dynamically.
Users need only add liquidity to the Cellar, which will handle the rest. Sommelier is currently the most advanced DeFi investment protocol built to date. Anyone with financial or crypto markets experience can propose new Cellar strategies to the Sommelier governance community for inclusion on the platform.
🚨 Aave cellar is now live! 🚨
Deposit your stables and let our cellars do the work 🚀
DeFi just got a whole lot easier 🔥
— Sommelier (@sommfinance) July 21, 2022
As more Cellars launch on Sommelier, the platform has the potential to offer a broad array of strategies competing against each other to attract capital.
“The launch of Cellars is a landmark moment in the evolution of DeFi. Even the most sophisticated investors may be overwhelmed by the DeFi investment terrain, and the ability to allocate their funds to automated investment strategies gives them an exciting opportunity to pursue DeFi investments in a new, more powerful way,” said Zaki Manian, Co-Founder of Sommelier.
Investors’ safety is Sommelier’s priority
The debut Aave Cellar has completed multiple audits and will continue to receive audits over the longer term. The Cellar is also restricted to only being able to move assets among a defined list of stablecoins on Aave, giving users peace of mind that their funds can only be withdrawn by the users themselves to their wallets.
Crucially, Sommelier is designed to be non-custodial. When users add assets to a Cellar, they’re routed directly to the DeFi protocols where the Cellar operates. This means that users’ ability to add or remove the capital they’ve deployed in Cellars is not dependent on the Sommelier blockchain or any bridge.
Sommelier levels the playing field by enabling retail users to participate in highly sophisticated DeFi investment strategies that have until now only been available to large institutional investors. For instance, retail investors in DeFi have gotten burned with impermanent losses and transaction fees in trying to compete with whales when providing liquidity in various DeFi protocols.
Now with Cellars, they can access the most cutting-edge DeFi investment strategies. The Cellars are powered by off-chain computation, which may take the form of machine learning algorithms, and can be built to execute strategies based on various inputs.
Cellars are a long-anticipated step towards realizing the vision of a one-stop shop for investors to deploy capital across the DeFi space through easy-access automated portfolio managers. DeFi strategists are invited to develop and submit new Cellar proposals to governance and bring this vision to life.