FAQ
Sommelier is an innovative DeFi protocol that enables vaults to dynamically adapt to market conditions. It provides enhanced yield opportunities and risk mitigation for users.
Turbo stETH is a multi-strategy yield vault on Sommelier. It focuses on stETH and wstETH DeFi opportunities on protocols like Aave and Uniswap.
Turbo stETH combines leveraged staking, Uniswap V3 liquidity provision, and buying wstETH and/or stETH below peg. It acts as a comprehensive yield vault for stETH and wstETH. Deposits in stETH are converted into wstETH and/or WETH for DeFi strategies. The vault continuously monitors market conditions, covering gas fees during adjustments (rebalances), making it an efficient and accessible way to participate in liquid staking DeFi.
The vault generates yield through the staking yield of stETH and wstETH, trading fees from liquidity provision, buying wstETH and/or stETH below peg, and leveraged staking.
Turbo stETH doesn't have any redemption fees. When closing a position on Turbo stETH, you'll receive the equivalent amount of stETH that your position was worth at the time it was closed.
It's important to highlight that, especially for users with short-term Turbo stETH participation, the value of the assets within the vault can fluctuate, and there are also minor costs associated with entering and exiting its DeFi strategies such as swap fees and platform fees. Platform fees are charged every 72 hours and collected in advance. This implies that if you withdraw before your position has covered these costs, you may receive less than your initial deposit amount.
The vault also maintains a liquid reserve of around 5% of its TVL (currently around 700 ETH) to service withdrawals. If your withdrawal exceeds this amount and the withdrawal fails to process, you can contact @Strategist Support on the Support channel of the Sommelier Discord to request additional liquidity.
All Sommelier vaults contain smart contract risks and varying degrees of economic risks. Please take note of the following risks:
1. This vault uses leverage which presents a risk for the vault to be liquidated. Although there are safeguards in place to help mitigate this, the liquidation risk isn't eliminated.
2. This vault does liquidity provision for ETH and LSTs to earn trading fees. While stable pairs are typically subject to less impermanent loss, the risk of impermanent loss isn't eliminated.
3. This vault holds LSTs which can experience de-pegs relative to their intrinsic value.
The vault also maintains a liquid reserve of around 5% of its TVL (currently around 700 ETH) to service withdrawals. If your withdrawal exceeds this amount and the withdrawal fails to process, you can contact @Strategist Support on the Support channel of the Sommelier Discord to request additional liquidity. Please ensure that you are talking to an official moderator. They'll never ask you to provide your seed phrase, to connect your wallet, or to click on any links.
$SOMM is accessible on Uniswap on Ethereum mainnet or any of the DEX aggregators (such as 1Inch). It's also tradeable on the Osmosis DEX in the Cosmos ecosystem.
