Sommelier, a decentralized financial (DeFi) blockchain protocol and Ethereum bridge that acts as a co-processor for the Ethereum world computer, has announced a $ 1 million research and development grant from The Graph Foundation.
The grant will fund ongoing research and development of indexing performance, protocol optimizations, and improvements to the Graph Node. The Graph is a critical data layer for Sommelier’s multichain protocol and its decentralized financial (DeFi) applications, expected to launch in the second quarter of 2021.
Sommelier consists of the Cosmos Stargate SDK, the Tendermint-based consensus layer, and a decentralized bi-directional Ethereum bridge, managed by a global network of validators. Sommelier’s validators use Ethereum transaction data to analyze DeFi decisions on behalf of Liquidity Providers (LPs). Validators will use Graph Protocol to index on-chain DeFi data, to acquire and process thousands of transactions in real time. Liquidity Providers (LPs) will use Sommelier to write and execute complex, automated financial transactions such as portfolio rebalancing, limit orders and other features that token holders expect from centralized financing (CeFi) but not available in DeFi .
“As DeFi grows in transaction volume, a timely market response requires the ability to process tens of thousands of software transactions per second. The Graph protocol is the standard indexing and query protocol for DeFi, and our grant enables the Sommelier team to improve the performance of the Graph to match world-class financial data centers. We are delighted to add high-quality engineering to the Graph protocol so that our validators can be part of the growing Graph network. “
– Zaki Marian, Co-Founder, Sommelier
The Graph is a decentralized protocol for indexing and querying data from blockchains that supports Ethereum and 10+ other EVM-based chains and is expanding to non-EVM-compliant multi-blockchains later this year. The Graph makes it possible to retrieve data that is difficult to retrieve directly and eliminates redundant development work. The Graph’s data model is currently the standard for DeFi projects on Ethereum, providing questions and answers to market data such as trading volumes and balances. The Graph Foundation builds and expands the ecosystem and funds the most critical additions to the protocol and tooling, including the development of useful dapps and subgraphs and expanding the community.
“We are incredibly excited that Sommelier has committed to improving The Graph and partnering with Indexers to optimize node performance. Sommelier has a strong vision for democratizing DeFi data access in real time and building on the Graph protocol will help make that happen. “
– Eva Beylin, Director of The Graph Foundation