The actively managed quant strategies are provided by ClearGate
COSMOS, Minn., Oct. 27, 2022 /PRNewswire/ — Sommelier, the pioneering automated DeFi portfolio management platform, today announces the launch of two new Cellars, or automated strategies, that are designed for ETH and BTC holders who are looking for improved, risk-adjusted performance of their assets. These strategies are provided by ClearGate, a firm with proven TradFi quant trading expertise, and are their debut Cellars on Sommelier. Both will be available through strategy tokens, an entirely new asset class being listed on Uniswap V3 to start, as well as through direct liquidity provision.
The Trend following portfolio in BTC and ETH (Ticker: ETHBTCTrend) and the Momentum portfolio in BTC and ETH (Ticker: ETHBTCMom) are designed with ETH and BTC holders in mind and designed to outperform the spot market while offering a better risk-return profile. They both leverage quantitative rules that actively rebalance the Cellars. The trend following portfolio follows price trends and adjusts holdings when a new trend is observed. The momentum portfolio is more reactive to price appreciations of either asset.
Both strategies use USDC as a neutral currency to reduce exposure when appropriate. Designed as the more aggressive of the two strategies, the momentum Cellar always maintains at least some exposure to BTC and ETH while the trend following Cellar can completely move into USDC to remove risk in adverse market conditions.
“ClearGate’s debut Cellars on Sommelier strike me as perfectly timed and with great product-market fit during this crypto winter,” said Zaki Manian, Co-Founder & CEO of Sommelier. “Through every crypto market cycle, we’ve seen that hodling is the primary instinct for investors during the bear markets, and these Cellars offer that audience a kind of hodl-plus strategy where they can hodl these strategy tokens instead of ETH and BTC.”
ClearGate prides itself on extensive backtesting and a reliance on quantitative analytics to reduce human biases in strategy execution. They design and optimize strategies and portfolios to provide better risk and return trade-offs compared to simple buy-and-hold approaches, which clearly aligns with Sommelier’s core objective: to provide democratized access to sophisticated, active portfolio management for a wide spectrum of consumers, including the average hands-off investor.
“I’m incredibly excited about the potential of DeFi to give anyone the ability to participate in finance, particularly in those areas that have only been accessible to a small, well-capitalized set of investors,” said Tõnn Talpsepp, CEO & Head of Research at ClearGate. “Being able to apply the quant trading expertise I’ve developed in both professional and academic settings to accelerating this financial paradigm shift is a dream come true. Sommelier’s architecture is groundbreaking for enabling the simple deployment of actively managed DeFi trading strategies without requiring strategists to have a background in smart contract development. This sets the stage for many teams like ours to bring the expertise they’ve developed in traditional finance to this new frontier.”
Sommelier is a DeFi blockchain protocol, built on the Cosmos SDK, and a bi-directional Ethereum bridge, managed by a global network of validators. Taken together, this collection serves as a co-processor to Ethereum – that is, Sommelier uses a Cosmos chain to process as many DeFi strategy calculations as possible off of Ethereum. Sommelier LPs can benefit from a wide array of transaction features, such as portfolio rebalancing and limit orders based on dynamically changing market conditions. Vault-style Cellars on Sommelier automatically execute these strategies with smart contracts and are entirely governed in a decentralized manner by users.
Sommelier was founded in 2020 by Zaki Manian, a lead developer on the Cosmos protocol and Tendermint, and a prolific team of Ethereum and Cosmos developers. The protocol is currently in mainnet and actively seeks new contributors and community members.
To learn more about Sommelier, please visit https://sommelier.finance/
To use Sommelier, please visit https://app.sommelier.finance/
To participate in the community, please join the Telegram group https://t.me/getsomm
To follow the project on Github, please star the project https://github.com/PeggyJV/sommelier
ClearGate leverages data-driven research to develop quantitative strategies for finding profit opportunities on crypto markets and DeFi protocols. The team relies on decades of market experience on various financial and alternative asset markets and combines it with rigorous data analysis and insights from academic research. ClearGate backtests and optimizes trading strategies for various market conditions to achieve a desired risk and return tradeoff and takes advantage of machine learning to optimize risk exposure to lower volatility of the strategies. This enables the customization of strategies according to the risk preferences of the user. To learn more about ClearGate, please visit ClearGate.Capital.