BTC and ETH Momentum and Trend Following Cellars Launch on Sommelier as Strategy Tokens
Sommelier, the pioneering automated DeFi portfolio management platform, 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 and the Momentum portfolio in BTC and ETH 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.
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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.”
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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.”
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