Sommelier is built using the Cosmos Stargate SDK and a decentralized, bi-directional Ethereum bridge, managed by a global network of validators.
Liquidity Providers will be able to use the Sommelier to deploy complex and automated financial transactions. With Sommelier, liquidity providers can use tools such as portfolio rebalancing, limit orders, batched orders, as well as a host of other features.
(Note: As of March 10, 2022: Sommelier has had a soft launch - most of infrastructure is up and running but core functionality has not been delivered. Launching of the first cellar will indicate delivery of core functionality.)
Reward Distribution Period
Every block (~6 seconds)
Delegation Requirements (Min-Max)
Min 1 SOMM
No inflation, Additional reward information
Figment Validator Address
No slashing at this time
No slashing at this time
Sommelier is a “Coprocessor for Ethereum” with the ability to automate user portfolios to maximize their yields. The protocol can be seen as a simple tool that optimizes yields for DeFi users. Liquidity providers are in a constant search for the highest yield liquidity pools for their portfolio and Sommelier solves that problem by automating everything.
Airdrop Snapshot Date: Oct 31, 2021
You will receive SOMM tokens if you qualify in one of the following groups:
- Sommelier Pairings dApp Liquidity providers for Uniswap V2 and V3
- Uniswap V3 Liquidity providers
- Osmosis liquidity providers
Factors taken into account when determining airdrop amount:
- Address participation
- Liquidity size participation
- Liquidity duration participation
The 15m SOMM will be distributed according to the following distribution:
Now that we have the Airdrop sorted, you can now start staking!
You can access Keplr via Google Chrome extension or the desktop app. If you are curious on how to create a Keplr wallet, please refer to our guide here.
Once you’re on the dashboard you will see a list of all networks supported by the Keplr wallet like below, click Sommelier:
You will see a drop down menu and should see your available SOMM (top left):
Click “Stake” and you will see a list of all Active Validators. Click Manage to proceed.
Figment Validator Address: sommvaloper1lexs4myxfp7k6n685qp6tw6mddkr2wetwddm2p
You will now see a “Delegate” button, proceed and you will see this:
NOTE: It is worth keeping in mind that the staked asset will be locked for min. 21 days.
Choose how much you want to delegate, click “Delegate” and you will see a Keplr pop-up asking you to “Approve” the transaction:
Click “Approve” and you're done!!
You should see your staked SOMM in the dashboard like this. Congratulations! You have successfully staked SOMM to Figment.
It's important to keep in mind that there is no inflation, HOWEVER, no inflation does not mean you will not earn any rewards. Sommelier uses a unique method of reward distribution generated through their use of Cellars. In simple terms, Cellars are Ethereum smart contracts used to rebalance and reinvest portfolios. You can read more about them here.
Each Cellar will accommodate a different strategy (tick ranges) and charge a specific fee. Any revenue generated from Cellar or Validator fees is funneled back into the Bridge, then distributed proportionately across all delegators to all of the different validators. So if you’re staking SOMM tokens, you will receive a chunk of the fees. If you’re interested in reading the technical details of Validator revenue generation you can read more here.
SOMM stakers will have direct control on the community fund and can take part in governance to vote on how the funds are allocated, Cellar mechanics and future developments.
What is Sommelier?
Sommelier is built using the Cosmos Stargate SDK and a decentralized, bi-directional Ethereum bridge, managed by a global network of validators. Liquidity Providers will be able to use the Sommelier to deploy complex and automated financial transactions. With Sommelier, liquidity providers can use tools such as portfolio rebalancing, limit orders, batched orders, as well as a host of other features.
What is protocol staking?
On a Proof of Stake blockchain, protocol staking is the act of depositing tokens in order to become a validator; that is, to participate in proposing and attesting to transaction blocks. Anyone with a minimum necessary coin balance can validate transactions and earn staking rewards on these blockchains.
What is the name of the asset being staked?
The native token on Sommelier is called SOMM.
What is the SOMM token used for?
SOMM tokens can be used for voting on governance proposals, staking, and rewarding liquidity providers.
Where can I explore the network and create a Sommelier wallet?
Explorer Keplr wallet
How long does it take to stake and unstake?
The unbonding period lasts 2,419,200 seconds (28 days). During this time you will not earn rewards. When the process is complete, you can transfer and/or trade your SOMM tokens.
Will I keep receiving rewards after I unbond?
No. Once you unbond you stop receiving rewards.
Which type(s) and what rate of rewards can I expect?
Stakers and validators can expect 5% rewards.
When do rewards get distributed?
Rewards are distributed every block which is approximately 6 seconds.
How is staking income disbursed? Is staking income liquid or automatically staked?
Cellars are ultimately managing the fee mechanism; profits from the Cellars are piped back to the chain. Sommelier makes use of the Cosmos distribution module to share such profit amongst delegators and validators. if you are staking SOMM tokens you will get a pro-rata chunk among all the other stakers of those fees
Can I lose potential staking rewards?
Your potential rewards depend upon validator performance. When your validator is down, you will not be earning staking income.
Can my staked SOMM be slashed (seized or destroyed)?
Currently, Sommelier does not enforce slashing for double signing and downtime. However, when a validator doesn’t sign at least 5% in a window (signed blocks window is 5000), the validator gets jailed for 8,640 seconds (approx. 2 hours and 24 minutes).
What is the rate of new issuance (aka "annual inflation") for SOMM? How does the token supply change?
Sommelier has been initially launched without inflationary rewards and is expecting to activate it only when it’s really doing something critical for the success of the community. Cellars are ultimately managing the fee mechanism directing tokens revenues back to the Gravity Bridge and using the Cosmos distribution module to share such profit amongst delegators and validators.
What is the total supply of the SOMM token?
Currently, there is a total supply of 500,000,000 SOMM tokens minted and distributed. There’s a possibility that Sommelier will have to mint more SOMM to refill the community pool as the project develops further.
Do I maintain custody of my SOMM tokens?
Who or what controls my staked SOMM token? Yes, Sommelier is a non-custodial protocol, which allows users to remove their funds at any time, no matter the state of the Sommelier protocol. Figment has partnerships with top-in-class custodians, for inquiries please contact: [email protected]
What is a Cellar?
A Cellar is a DeFi Smart Contracts based on instructions dictated by off-chain computation. It executes trades among a set of tokens, and it’s managed by the Sommelier validator set.
What are the SIPs?
SIPS are proposals to update some function or standard within the Sommelier Ecosystem and can vary from proposing new community initiatives to requesting funds from the community pool to changing consensus parameters. Learn more here.
How are decisions about Sommelier made and executed?
Sommelier is a self-governing network, where decisions are discussed and taken by its community. Governance discussions are typically discussed here: Sommelier Forum, Discord and Telegram chats. To formally become a proposal (also called SIP), it must be submitted in the Sommelier Governance Forum, which will be later voted on-chain.