Sommelier Protocol Team Weekly Update #4

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Sommelier Protocol Team Weekly Update #4

Welcome to the weekly Protocol team update on the Sommelier protocol upgrades, where we inform on everything that the Protocol team has been working on, including Cellars, Gravity Bridge and other important upgrades to the protocol.

The Sommelier chain is a Cosmos SDK application chain. It is the core of Sommelier that makes decisions about whether to act on data providers’ recommendations and executes Cellar functions. Transactions and function calls are only settled on-chain when the Validators reach consensus.

Sommelier Upgrade

The protocol team worked together to cut a release for the Sommelier chain upgrade after CabernetFranc passed. For instance, in Gorc, instead of retrieving block delay over and over, this upgrade makes it possible to get the block delay before starting the main loop.

Next, a gas multiplier option was added to the deploy erc20 command was added to Gorc. This is to enable proper estimation of the gas limit of transactions. This will allow validators and data providers to properly estimate how much gas is necessary to deploy an erc20 token.

Here are some reasons why the upgrade was necessary:

Upgraded gravity contract
Integration of the allocation module

Steward Allocation Module

The protocol team also wishes to compliment the Sommelier upgrade with a steward release. Validators need a way to receive recommendation data from the Data Providers, reach a consensus on whether to act on that data, and then call functions on the Cellars with the provided data as parameters. This is where Steward comes in.

Steward runs on every Validator in the Sommelier Validator set. It runs a server to which Data Providers send recommendations as soon as market data becomes available. This payload contains identifying information about the Cellar which Steward is meant to act on, and the recommended arguments for its rebalance function parameters. When Steward receives a new recommendation, it submits a vote to rebalance the appropriate Cellar based on that data. If Validators reach a quorum, the process of rebalancing begins.

Since Sommelier is a Cosmos chain, in order to provide strategies on Ethereum it needs a way to bridge assets and logic calls. Steward is responsible for running the Orchestrator, which handles relaying Cosmos transactions to Ethereum, and co-processing Ethereum transactions on Sommelier. Steward runs the Orchestrator so that Sommelier can manage Cellars on Ethereum.

To achieve this, the protocol team built the Allocation module to enable Uniswap V3 cellars. With this, Validators can vote for rebalancing Cellar funds in response to a Data Provider’s recommendation based on market changes

To learn more about Sommelier, please visit https://sommelier.finance/

To use Sommelier, try the Pairings App at https://app.sommelier.finance

To participate in the community, please join the Telegram group https://t.me/getsomm.

To follow the project on Github, please star the project https://github.com/PeggyJV/sommelier.