About Sentiment Airdrop

Sentiment Airdrop is a liquidity protocol launching on Arbitrum. On Sentiment, borrowers access 5x leverage which can be deployed permissionlessly. Borrowers can use this leverage to long or short tokens or deploy assets into various other DeFi protocols that Sentiment is integrated with. Users can leverage into integrations such as AAVE, Curve, and Sushi, to increase their yield.

Sentiment doesn’t have an own token yet but could launch one in the future. Early users who’ve done transactions on the platform may get an airdrop if they launch an own token.

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Step-by-Step Guide:

1. Visit the Sentiment website.
2. Connect your Arbitrum wallet.
3. Now click on “Mint a margin wallet” to create your wallet.
4. Go to your account and deposit assets.
5. Now click on “Trade” and make swaps.
6. Click on “Invest” and lend some tokens.
7. Click on “Borrow” and borrow assets and repay.
8.  Also use their “ETH Wrapper” feature to wrap or unwrap ETH.
9. Early users who’ve traded on the platform may get an airdrop if they launch an own token.
10. Please note that there is no guarantee that they will do an airdrop and that they will launch their own token. It’s only speculation.

Sentiment for Lenders​

Lenders supply liquidity to the protocol which is then lent out to borrowers as undercollaterised debt. The value proposition for Lenders is straightforward – they supply assets to the protocol with the expectation to earn a yield higher than that in incumbent credit markets.

Lenders interact with the protocol by supplying assets and receiving corresponding interest-bearing LTokens in return. These LTokens act as a receipt of deposit and can be burned at a later point in time to redeem the initial principal and accrued interest on the same.

Sentiment for Borrowers​

Sentiment allows borrowers to create leveraged debt positions against their assets that can be used to interact with other applications across the ecosystem. The value proposition for borrowers is access to undercollateralized lines of credit that help leverage their collateral in a capital-efficient manner.

Borrowers interact with the protocol using an Account. Every Sentiment account is a proxy contract that holds the borrower’s assets while allowing them delegated control to deploy these assets anywhere. The borrower has complete control on how the assets in an account are deployed subject only to Sentiment’s risk measures that help keep the system solvent.

Account

Sentiment uses the Account primitive to implement onchain hypothecation of assets, essentially allowing borrowers to create leveraged debt positions against their collateral while mitigating counterparty for the lenders. Accounts are dynamic and distributed asset reserves that hold a borrower’s collateral and loaned assets. Each Account can be viewed as a composite cross-margin debt position. This section expands on the key characteristics of an Account.

Delegated Ownership​

Since the account is a proxy contract which is separate from the borrower’s EOA, the borrower never has custody of the loaned assets i.e. neither the deposited collateral nor the borrowed assets can be transferred out of the account.

This delegated ownership model allows the borrower to have complete control over how the assets are deployed without actually having custody, which allows the protocol to maintain first right of ownership throughout the tenure of the position.

The first right of ownership is a crucial to allow the protocol to keep the position risk in check at all times and facilitate liquidations, if needed. The only situation where a borrower would withdraw any assets from the vault is to withdraw profits, reduce the position or close out the entire position.

Controlled Interactions​

All interactions delegated by the borrower pass through the controller. The controller analyzes the calldata for the interaction to determine the type of operation and it’s affect on the account value. This allows the protocol to restrict the actions a borrower can perform with the borrowed assets to mitigate credit risk and maintain solvency in the system. Sentiment aims to provide an interaction suite that continues to scale as more opportunities become available in DeFi.

Borrowing

In order for a user to utilize an Account to borrow debt they must deposit collateral asset(s) into it. Sentiment allows cross-margining of assets by default which allows the user to deposit multiple collateral types in order to amortize price exposure across multiple assets and to provide increased capital efficiency. Sentiment will aim to allow composite collateral types such as aTokens and yTokens with the aim to introduce exotic collateral types such as ITM option tokens.