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What are Sommelier Whales Doing On-chain?
Jake Kennis
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Key Takeaways
6 min read

  • The 'Real Yield ETH' cellar consistently remains the best-performing strategy for ETH yield post-merge, with 9% APR since inception in April and 15% APR over the last 7 days, outperforming stETH by over 3x.

  • The ‘Sommelier Whales’ are a segment of 20 wallets with diverse on-chain activity. 50% are in the top 0.1% of Ethereum account balances (USD), and 45% are in the top 0.1% of all existing Ethereum accounts based on account activity.

  • The ‘Sommelier Whales’ are active yield seekers with heavy allocations to applications like Sommelier, Convex, B.protocol, Lido, Aura Finance, FraxLend, and the top token holdings include ETH, OETH, DYDX, and BITCOIN.

Introduction

Sommelier Finance is a DeFi-focused app chain on Cosmos that makes vaults for users to generate yield on their assets. Their approach allows for sophisticated strategies to be done on-chain that generate more yield for depositors. These include proprietary strategies that have been backtested and dynamically adjust for risk and volatility (i.e dynamically LP in Uni v3 pools, etc). To allow such sophisticated vault strategies, they have built out a Cosmos app-chain to align off-chain inputs to then be implemented on-chain on Ethereum.

We covered their chain extensively but this report will focus on their ‘Real Yield ETH’ cellar. We focus on this vault...