How does the Sommelier Real Yield USD opportunity work?
Yield farming allows crypto traders to simultaneously invest their tokens in multiple credit and liquidity pools. But it also takes work.
You need to constantly swap your cryptocurrencies in and out of different protocols as their yields change. In other words, you must actively manage a portfolio that should be passive.
Sommelier automates this work for you.
A curated strategy created by crypto market experts and tuned to Cosmos automatically allocates your stables to various credit and liquidity opportunities on Aave, Compound and Uniswap, and reallocates profits in response to changing market conditions. All with smart contracts.
The algorithm uses your funds for multiple opportunities at once, mitigating risk and continuously pushing your funds to the point of highest return by acting like an old-school fund manager, but without having to trust anyone else.
And the most important aspect of the opportunity is the “real return”.
This refers to the fact that you make money from traditional assets, not governance tokens, and that your earnings come from credit or trading fees, not incentives.
In other words, you earn the tokens you want, and your returns come from actual activity, NOT an initial, unsustainable token pump from the opportunity provider.
How does the rhino.fi boost work?
rhino.fi has secured a SOMM token seed grant from the sommelier team, allowing us to deploy a guaranteed boost.
The APR you get depends on the time you invest and the number of people who have already done so. So if you’re the first, you’ll get one Increased APR by up to 600%and yields will gradually decrease over time. The boost will last for a total of 30 days for the Real Yield USD opportunity.
All users have until June 23 at 23:59 BST to claim their SOMM tokens. After this time, users will no longer be able to receive their SOMM rewards.
What are the risks of investing in this opportunity?
Like all yield farming and liquidity provision programs, the Sommelier Real Yield opportunity is subject to certain risks. These include:
- Smart Contract Risk. In very few cases, smart contracts have been hacked.
- liquidity risk. Occasionally, liquidity providers are unable to remove their tokens due to insufficient assets in the pool they choose. This can be a problem when you want to unlock your tokens. Again, this is extremely rare as the pools invested in with this strategy have high TVL.
- value fluctuation As mentioned, a temporary loss can be a problem for yield farming and LPing: this happens when the value of your tokens fluctuates in the “real world”, meaning you incur an opportunity cost if you don’t remove your tokens from the pool and can trade them. However, Sommelier has attempted to mitigate this risk by leveraging Uniswap’s tick ranges.
Anything else? Contact us.
You can always contact us via Twitter or Discord if you have any questions about this opportunity or anything else we offer on rhino.fi.
We will also be writing a tutorial on Real Yield soon and will post it here once it’s online. And if you want to deposit your money for this opportunity, here is the button again:
Learn Crypto Trading, Yield Farms, Income strategies and more at CrytoAnswers
https://nov.link/cryptoanswers
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