Sommelier
Sommelier is a decentralized finance platform built on the Cosmos SDK, offering automated vaults and interchain DeFi strategies with a focus on security and community governance.
Services
Sommelier offers automated vaults designed to find best-in-class yields while mitigating risk. This includes specific yield strategies such as Real Yield ETH, Real Yield BTC, and Real Yield USD. The Real Yield ETH strategy maximizes yield through Aave and Compound leveraged staking, as well as Uniswap V3 liquidity provision. The Real Yield BTC strategy focuses on maximizing WBTC-denominated yields through a dynamic set of strategies. The Real Yield USD strategy targets maximizing yields for USDC, USDT, and DAI across platforms like Aave, Compound, and Uniswap V3.
Governance
SOMM token holders control governance of the Sommelier protocol. All vaults and their smart contracts undergo community governance approval before onboarding. Additionally, SOMM holders have the ability to stake their tokens, securing the protocol and earning staking rewards funded via fees generated by the vaults.
Interoperability
Built on the Cosmos SDK, Sommelier maximizes interoperability with other blockchains. It features a decentralized, bi-directional Ethereum bridge managed by a global network of validator computers. This allows the protocol to function on multiple chains, passing rebalance instructions to vault smart contracts without bridging assets.
Security and Safeguards
The Sommelier protocol is designed with multiple safeguards, including those encoded in vault smart contracts and the validator set. Validators reach consensus on rebalances executed on-chain, ensuring no single entity has control over the protocol. Furthermore, all smart contracts have been independently audited, and there is an active bug bounty program through Immunefi to ensure security and stability.
Investors
Sommelier's investors include Polychain Capital, Standard Crypto, and Multicoin. These investors support the protocol, contributing to its growth and development in the DeFi space.