I’m using the Dragonfly Red in my headphone rig and am pleased with the improvement in performance over plugging directly into my iPad, which is admittedly a low bar. That said, and as good as the Cobalt May be, I’d never consider using a $300 DAC in my dedicated 2-channel system. There are just too many great DACs out there today at relatively reasonable prices, and cheaping out on a source component just doesn’t seem worth it. At some point in audio you get what you pay for. The Cobalt may be a good DAC for $300, but at that price and size there are significant limitations as to what can be achieved. I’m happy with the Red for its performance and especially its portability with my headphones, but portability isn’t an issue in a serious home system so I’d go for the added performance of a better DAC in that situation. FWIW.