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I think that the divots keep the veggie slices from sticking to the side of the blade... but I'm not sure.

Thats our sheepsfoot blade though - pretty intense huh? <img src="/ubbthreads/images/graemlins/laugh.gif" alt="" />

yeah, they're there to keep food from sticking. nothing's more annoying that having to pry a piece of cheddar off the side of a chef's knife. except maybe not doing it carefully and cutting yourself. not that I'd know...