Sommelier is a coprocessor built for Ethereum, designed to shift DeFi assets from Automated Market Makers (AMMs) into better-yield opportunities faster and at lower cost than before. It achieves this via automated investment approaches that run across multiple protocols. Community members can set up Cellars that carry out a chosen investment plan using smart contracts. These Cellars are supported by Strategy Providers (SPs), who build trading strategies and pass the suggested steps to Sommelier Validators for execution on the Cellar, with the goal of generating yield.

What are the main use cases for Sommelier?

Automatically rebalance your portfolio when pool performance shifts, requiring strategy updates due to impermanent and unrealized lossesAutomatically rebalance to prioritize higher-yield Liquidity Provider opportunities while leaving behind lower-yield optionsAggregate and batch transactions through Sommelier to reduce gas costs as Liquidity Providers increase activity to manage pool position and performanceNative batching and roll-ups help drive stronger liquidity momentum to capture on-chain yield across the Ethereum blockchain.

SOMM is the token used as the settlement layer for all activity within the Sommelier protocol. It collects the fee income created by the system and rewards every participant role for ongoing contribution and involvement in protocol governance.

Sommelier revenue can be generated in six different ways:

Earn yield by depositing ETH token pairs into a CellarCreate a Cellar and receive fees as a share of Cellar profitsOffer a Strategy to one or more Cellars and earn fees as a share of Cellar profitsValidate transactions on the SOMM network and earn revenue as a small percentage of the Cellars’ feesDevelop your own frontend for the Sommelier protocol and earn fees produced by your users.