Sommelier – New Processor for EVM

What is a sommelier?

Sommelier is a DeFi blockchain protocol, built on top of the Cosmos SDK and a two-way Ethereum bridge. Taken together, they act as a processor for Ethereum – i.e. Sommelier is using the Cosmos blockchain to process as many transactions on Ethereum as possible. The protocol is supported by Validators and liquidity providers (LPs), who can benefit from a wide range of trading features, such as portfolio rebalancing and limit orders based on market conditions.

Highlights of Sommelier

Sommelier was created to address the inefficiencies and limitations of current DeFI platforms, where users frequently experience impermanent losses and delays in transactions. Liquidity providers (LPs) can execute complex and automated trades making the provision of liquidity more efficient and intrinsically more profitable.

Examples: These automated financial transactions include portfolio rebalancing, limit orders, batch orders, and more.

Limit Impermanent Loss
Automatic Portfolio Rebalancing
Lower Transaction Fees
More Effective Liquidity Mechanism

Tokenomic

SOMM is the underlying token for all transactions (fee and reward) on the Sommelier protocol. The total SOMM supply is capped at 500 million. 150 million tokens have been assigned to the Sommelier Community team, and 200 million to the Sommelier Foundation. 50 million awarded to protocol contributors in 2020.

Token: SOMM
Max Supply: 500,000,000

Community: 150,000,000 VND
Foundation: 200,000,000 VND
Investor & Advisor: 100,000,000 VND
Airdrop: 50,000,000 VND

How to own a token Sommelier?

Currently, users can participate in owning Sommelier tokens through the following forms:

Earn profit through depositing money in Cellar.
Build a strategy for one or more Cellars and earn fees as a percentage of profits.
Create Cellar and get performance-based management rewards.
Validate transactions on the SOMM network and receive rewards.
Build an interface for the Sommelier protocol and receive fees from other investors.

What are Cellars?

Cellars are smart contracts that represent DeFi strategies. Users may be familiar with the Vault concept from other platforms. The unique value of the Sommelier protocol is the Sommelier stack, which can update Cellar positions and manage user funds based on live market data. In this sense, Cellar supports trading strategies with medium frequency, as opposed to other platforms where strategies are static (zero frequency) and cannot take direct market data as input.

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