Sommelier is a coprocessor for Ethereum that moves DeFi assets from Automated Market Makers (AMMs) into higher yields more quickly and cheaply than previously possible. This is done through automated investment strategies implemented across different protocols. Community members can create Cellars that execute an investment strategy through smart contracts. Cellars are powered by Strategy Providers (SPs) who develop trading strategies and send the recommended actions to the Sommelier Validators to be executed on the Cellar with the intention of gaining yield.

What are the main use cases for Sommelier?

Automatically rebalance your portfolio when pool performance changes such that impermanent and unrealized losses require a change in strategyAutomatically rebalance the portfolio to focus on high yield Liquidity Provider opportunities and exit lower-yielding opportunitiesAggregating and batching transactions with Sommelier will yield lower gas prices for growing demand among Liquidity Providers to manage pool position and performanceNative transaction batching and roll-ups deliver greater liquidity momentum to capture on-chain yield on the Ethereum blockchain.

SOMM is the token that underlies all transactions on the Sommelier protocol. It captures the fee revenue that is generated by the system and incentivizes each role in the ecosystem to continue performing their function and participate in protocol governance.

There are six different ways to generate revenue using Sommelier:

Earn yield through depositing ETH token pairs into a CellarCreate a Cellar and earn fees as a percentage of Cellar profitsProvide a Strategy to one or multiple Cellars and earn fees as a percentage of Cellar profitsValidate transactions on the SOMM network and earn revenue as a small percentage of fees from the CellarsBuild your own frontend for the Sommelier protocol and earn fees generated from your users.