Article Summary, Automatically Generated By AI
Summary of Sommelier (SOMM)
Key Points
- Sommelier is a non-custodial, cross-chain platform for executing intelligent DeFi vaults (Cellars).
- Cellars are powered by Strategy Providers (SPs) who develop trading strategies.
- Sommelier employs a unique architecture consisting of the Sommelier Cosmos SDK blockchain and an off-chain execution environment.
- Sommelier aggregates and batches transactions, reducing gas fees.
- SOMM is the native utility token used for securing the proof of stake blockchain, fees, staking, governance votes, and distributing real yield.
Numbers and Figures
- 500 million SOM
About Sommelier
In the realm of cryptocurrency, where market volatility and information overload often reign supreme, a guiding light is essential for navigating the complexities of this rapidly evolving landscape. This is where Sommelier comes into play – a visionary platform designed to empower users with the knowledge, tools, and insights necessary to make informed investment decisions.
Introducing Sommelier (SOMM): A Comprehensive Overview
Sommelier is a decentralized, cross-chain platform that facilitates the execution of sophisticated DeFi vaults, dubbed Cellars. Within this ecosystem, community members are empowered to create Cellars that leverage advanced DeFi positions, which are orchestrated by smart contracts. These Cellars are fueled by Strategy Providers (SPs), who devise and transmit trading strategies to the Sommelier Validators, which in turn execute the recommended actions on the Cellar, with the ultimate goal of generating yield.
Cellars can employ strategies such as: a diversified portfolio of BTC and ETH, dynamically rebalanced in response to price trends identified by machine learning algorithms; an NFT trading strategy that capitalizes on Twitter sentiment surrounding specific collections; or a strategy that mitigates liquidity provision risks on decentralized exchanges (DEXes).
Sommelier boasts a distinctive architecture, comprising the Sommelier Cosmos SDK blockchain, an off-chain execution environment that ensures the confidentiality of strategies while facilitating the utilization of a diverse range of off-chain data modeling techniques. Additionally, it features one of the highest-performing ETH bridges. Strategy instructions are seamlessly transmitted across this bridge, enabling the repositioning of assets within Cellars. Furthermore, this bridge is being continually expanded to provide access to alternative chains, such as Polygon and Avalanche, thereby liberating strategies from the constraints of high gas ETH markets.
Sommelier aggregates and batches transactions, thereby mitigating the burden of exorbitant gas fees, offering a compelling alternative to Ethereum’s prohibitively high transaction costs. In terms of security, Sommelier employs a decentralized governance mechanism, overseen by validators, ensuring the state-of-the-art protection of user funds. Validators transmit strategy instructions across the bridge, while users’ assets remain stationary, never traversing the bridge, instead being deployed directly into Cellars. Moreover, Cellars operate on a non-custodial basis, empowering users to withdraw their assets at their discretion, with strategy providers never assuming ownership of these assets.
SOMM is the native utility token, serving as the cornerstone of our ecosystem, and is utilized for:
Ensuring the integrity of the proof-of-stake blockchain
, transaction processing fees are utilized to
power validator nodes on the network, facilitated through the staking of SOMM tokens
. Furthermore,
governance votes are exercised to determine the selection of Cellars for platform deployment and the allocation of network resources
. Additionally,
a proportion of the genuine yield generated by Cellars is distributed to stakers
.
The Circulating Supply of SOMM Tokens: A Closer Look
Currently, a total of 500 million SOMM tokens are in existence.
Sommelier successfully launched its mainnet in September 2021, introducing an initial supply of 500 million SOMM tokens. The token distribution is as follows: 30% is allocated to the on-chain treasury, also known as the community pool, while 20% is held by the Sommelier foundation, 30% by investors, and 20% by the team responsible for developing Sommelier. Notably, Sommelier has maintained a zero-inflation economy since its inception. This is attributed to the innovative incentive mechanism, where SOMM stakers can earn tangible yields from the performance of Cellars on the platform, rather than relying on inflationary staking rewards. Furthermore, platform fees are designed to increase linearly with the growth of liquidity in Cellars, ensuring a sustainable and scalable ecosystem.
The Visionaries Behind Sommelier: Meet the Founders
Sommelier was founded by a team of visionary pioneers, including Zaki Manian, Kristi Põlsdam, Jack Zampolin, and Kevin Kennis, all of whom were early contributors to the Cosmos core. At the helm as CEO, Zaki brings a wealth of experience, having been a prominent developer in the blockchain space since 2014, when he self-taught cryptography and began contributing to seminal projects such as Bitcoin, Ethereum, Zcash, and Tendermint. Notably, he played a pivotal role in shaping the Cosmos ecosystem, including the launch of the first public Cosmos testnet, and served as director of Tendermint.
Acquiring Sommelier (SOMM): A Comprehensive Guide
SOMM is now accessible for trading on Osmosis (
https://coinmarketcap.com/exchanges/osmosis/
), and strategy tokens affiliated with Cellars will also be listed on this platform, as well as on prominent decentralized exchanges such as Uniswap.