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Sommelier to incorporate Chainlink CCIP

Sommelier is incorporating Chainlink CCIP to make use of its arbitrary communications capability. This will enable cross-chain vault activities, in which assets can reside on one chain while accumulating yield on other chains. This is accomplished by transferring messages and price data for vault shares cross-chain.

Sommelier selected CCIP to address the interoperability requirement, and Chainlink is known for its advanced safety and dependability features in the Web3 space. Additionally, CCIP has the support of the Risk Management Network, an alternative network that tracks and authenticates cross-chain activity and focuses on threat perceptions.

Sommelier, for its part, is a decentralized asset management protocol built on the Cosmos SDK. It is now available on Ethereum and will expand to other major EVM networks in the coming days. Sommelier is interested in developing clever vaults that respond to market conditions. Sommelier uses the ERC-4626 level for its vaults on EVM networks, where base assets are housed in a vault, and a certain amount of vault shares are returned to the user.

The inclusion of CCIP throughout Ethereum Layer2 protocols opens the way for sending messages regarding vault shares and price-related data across several blockchains. This enables Sommelier to provide yield-bearing assets that may be held in any vault.

Sommelier needed to secure the availability of a trustworthy and secure interoperability service to leverage the cross-chain messages transmitted across blockchains. After extensive discussion, the organization decided to implement Chainlink CCIP because of its many benefits and features, including its reliability and well-established safety mechanisms. Furthermore, it features a future-proof design, an upgradeable framework, and seamless integration.

According to the co-founder of Sommelier, Zaki Manian, it is all about the advanced safety factors being in place and the main reason behind their inclination towards CCIP. 

Chainlink is the benchmark for Web3 services platforms and has been responsible for carrying out large volumes of transactions throughout DeFi, insurance, as well as gaming, NFTs, and various other verticals. 

Sommelier, on the other hand, is an inventive asset management protocol. Its goal is to bring users closer to DeFi and create profitability and effectiveness. Their new-age technology created on the Cosmos SDK allows intelligent vaults to maximize portfolios, carry out long and short trading, and borrow, lend, and farm.

Jason Palmer

Jason Palmer joined CoinNewsSpan as an editor and analyst. He has over five years of experience as a forex analyst. He holds a master's degree in business administration with specialization in finance. He is actively involved in analyzing the prevalent crypto trends. He has a keen interest in commodities and forex trading.

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