Cellar is a smart contract that represents decentralized investment strategies.
, an on-chain investment protocol that runs as its own application-specific blockchain on the Cosmos network., a popular lending protocol on Ethereum. With Cellar, users can deposit funds and the protocol will automatically allocate to different DeFi platforms.or DAI, whichever offers the maximum yields.
As more Cellars launch on Sommelier, the protocol — with its broad array of strategies — is hoping to attract a lot of capital. Usually, on-chain investment funds rely on multi-signature contracts to execute the investment strategy. The private keys to multi-signature wallets can be controlled by a central group of developers, which may prove to be a single point of failure.
Anyone will be able to propose new Cellar strategies and become “Cellar strategy providers” if the strategy is approved by Sommelier's governance. This is because it’s designed to be non-custodial, and the capital supplied is not dependent on a centralized team.