Attention yield connoisseurs. Thanks to PWN’s latest integration of Sommelier’s assets, you can now enjoy best-in-class yield while using your cellar vault tokens as collateral for peer-to-peer loans. DeFi composability has never tasted so good.

Meet Sommelier

Sommelier is an innovative asset management protocol whose mission is to make DeFi more accessible, profitable, and efficient for everyone. Their advanced technology is built on the Cosmos SDK and enables intelligent vaults that can optimize portfolios, trade long-short, borrow-lend, and farm. Independent strategists can leverage the power of off-chain computation to bring algorithmic vaults on-chain, 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.

Why use Sommelier vault tokens as collateral on PWN?

PWN lets you use your cellar vault tokens as collateral to borrow the asset of your choice, so you can seize more DeFi opportunities or unlock looping strategies by redepositing in the vault, all while collecting yield. And there’s more:

• High-quality assets: Sommelier’s cellar vaults feature reputable assets like ETH, WBTC, and stablecoins. making them a highly trusted, desirable collateral for lenders.

• Yield-bearing collateral: Your Sommelier vault position works for you while you use it as collateral so you can offset your borrowing costs.

• Flexibility meets predictability: Borrowers on PWN can choose their loan terms (borrowed asset and amount, LTV, APR, duration). Once set, they remain immutable for the entire loan duration.

• No-price based liquidation: Forget about price fluctuations. The only way to lose your collateral is to miss the loan repayment deadline.

• Bundled leverage: You can bundle multiple assets to create a single collateral and unlock additional liquidity (you can mix your Sommelier vault tokens with NFTs and other ERC-20).

NB: Bonded assets can’t be used as collateral.

HOW DOES PWN WORK?

ABOUT PWN

PWN is a peer-to-peer permissionless lending protocol. In the true spirit of DeFi composability, PWN users can borrow against—or lend using—any asset in their wallet (ERC-20, NFT, and even a bundle of both), while enjoying absolute flexibility on the loan terms (LTV, duration, APY, etc.). The oracle-less nature of the protocol protects all PWN loans from price-based liquidations. The only way to lose collateral is to default on a loan.

Operating on six EVM-compatible networks*, PWN opens up new liquidity avenues, composability options, and leverage opportunities, while giving its users both optimized capital efficiency and predictability on both sides of the loan. A win on all fronts.

*Ethereum, Optimism, Arbitrum, Base, Binance Smart Chain, Polygon, Cronos