Sommelier Finance, a DeFi-centric asset management protocol, and Axelar, an interchain communication services network, have announced multichain DeFi integration across the Cosmos and Arbitrum One blockchains. The Integration is a cross-ecosystem DeFi application that integrates an innovative appchain developed by Cosmos veterans with the most popular implementation of Ethereum’s Layer-2.
General Message Passing (GMP) between Cosmos and the EVM chain is a new feature offered by Axelar. Axelar GMP paves the way for the transfer of any kind of data between the Cosmos and the EVM, not just currency. Expanding the capabilities of these decentralised strategies, Axelar GMP allows Sommelier to issue strategy instructions to vaults on Arbitrum One.
Sommelier’s DeFi vaults previously only ran on Sommelier’s blockchain within the Cosmos ecosystem, but now they will also be running on Ethereum and Arbitrum. Users are able to maximise returns on their crypto assets by accessing loan and trading services. Furthermore, their funds rotate automatically between various assets within the DeFi vaults.
Sommelier sees GMP as the key to rapidly scaling DeFi in the EVM ecosystem. Sommelier will employ GMP to operate intelligent DeFi vaults, initially on Arbitrum One and then on other Layer-2 blockchains. Sommelier has already gained popularity with successful vaults on Ethereum, such as Real Yield ETH and Real Yield USD ecosystems, enabling deep compatibility between applications. Data and assets can freely flow across the two ecosystems thanks to the communication protocol, allowing cross-chain applications to function.
With the integration of Sommelier’s Cosmos appchain and Axelar GMP, more vaults will have access to cutting-edge DeFi software like GMX on Arbitrum One. Using GMP, Sommelier will soon be able to support multiple blockchains for its vault functionality. You can stay abreast of the latest developments in DeFi strategy and multi-chain implementations by joining Sommelier’s community of DeFi enthusiasts, strategists, and innovative technologists.
This post was last modified on %s = human-readable time difference 10:08