Sommelier Is Integrating Chainlink CCIP to Unlock Cross-Chain Yield Vaults

We’re excited to announce that Sommelier is integrating Chainlink CCIP — the industry standard for secure cross-chain interoperability — across Arbitrum, Base, Ethereum, and Optimism mainnets. We’re leveraging CCIP’s arbitrary messaging functionality to enable cross-chain vault functionality, where assets can live on one chain but collect yield on multiple other chains by passing messages and price data relevant to vault shares cross-chain.

We selected CCIP to help provide this groundbreaking interoperability solution because Chainlink has a proven track record of maintaining the highest standard of security and reliability in the Web3 industry. Furthermore, CCIP is backed by the Risk Management Network — a separate, independent network that continually monitors and verifies cross-chain operations for suspicious activity. This additional layer of security is particularly important given historical industry exploits and the billions in user funds lost due to insecure and unreliable cross-chain infrastructure.

Sommelier is a decentralized asset management protocol built on the Cosmos SDK and available on Ethereum and soon expanding to prominent EVM networks. At its core, Sommelier builds intelligent vaults that proactively react to market conditions. For EVM networks, Sommelier uses the ERC-4626 standard for its vaults, in which base assets are locked into a vault and a respective number of “vault shares” are attributed back to the user.

Integrating CCIP across Ethereum layer-2 protocols unlocks the ability to pass messages regarding vault shares and price data across a variety of blockchains. This enables Sommelier to offer yield-bearing assets that any vault can hold — for example, a stablecoin vault on Ethereum that earns yield across various layer 2s.

In order to help secure the cross-chain messages passed across blockchains, we needed access to a highly secure and reliable interoperability solution. After reviewing various solutions, we elected to integrate Chainlink CCIP because it provides a multitude of important benefits and features, such as:

• Time-tested security and reliability — CCIP’s consensus and messaging layer is powered by Chainlink decentralized oracle networks, which have already secured tens of billions of dollars for smart contracts and enabled over $8 trillion in onchain transaction value. CCIP also features additional layers of protection and reliability via the Risk Management Network and Smart Execution.
• Seamless integration — CCIP offers a unified cross-chain developer experience by providing a single, easy-to-integrate interface. Developers only need to integrate the CCIP Router onchain to start building secure cross-chain applications.
• Scalable architecture — CCIP eliminates the need for developers to write custom code for chain-specific integrations, while users can interact with any blockchain via a single interface.
• Future-proof — CCIP is built to support continuous updates, such as the integration of new blockchains, the introduction of advanced functionalities, and the addition of other defense-in-depth approaches to security. Thus, integrating with CCIP eliminates future switching costs should new cross-chain functionalities be needed.

“Security is a fundamental pillar of the Sommelier protocol. While going cross-chain unlocks new liquidity and yield efficiencies for the end user, it also requires defense-in-depth security. We value CCIP for its approach to security and believe we’re future-proofing Sommelier by integrating this leading cross-chain solution.” — Zaki Manian, Co-Founder at Sommelier

About Chainlink

Chainlink is the industry-standard Web3 services platform that has enabled trillions of dollars in transaction volume across DeFi, insurance, gaming, NFTs, and other major industries. As the leading decentralized oracle network, Chainlink enables developers to build feature-rich Web3 applications with seamless access to real-world data and off-chain computation across any blockchain and provides global enterprises with a universal gateway to all blockchains.

Learn more about Chainlink by visiting chain.link or reading the developer documentation at docs.chain.link. To discuss an integration, reach out to an expert.

About Sommelier

Sommelier is an innovative asset management protocol whose mission is to make DeFi more accessible, profitable, and efficient for everyone. Our advanced technology built on the Cosmos SDK, enables intelligent vaults that can optimize portfolios, trade long-short, borrow-lend, and farm. Independent strategists can leverage the power of offchain computation to bring algorithmic vaults onchain, allowing vaults to dynamically adapt to market conditions and provide enhanced opportunities and risk mitigation to users. All vaults are enabled by audited smart contracts and controlled by protocol governance, ensuring transparency and security.