Searching for Alpha: Sentiment V2

Credit markets are foundational DeFi infrastructure, with protocols like Compound and Aave ranking among the largest in terms of TVL. Over-collateralized lending platforms have grown in popularity due to their simplicity and ease of use. Users get access to simple loans with cross-collateralized positions, while market parameterization carries relatively limited governance overhead. Despite these benefits, however, onchain borrowing still has relatively limited utility. 

Recursively borrowing and supplying assets using onchain money markets can allow users to take leveraged positions for better capital efficiency, with protocols like Instadapp, DeFi Saver, and Contango simplifying this process. However, these offer leverage that is relatively limited in scope to simple leveraged spot positions for assets supported by the underlying money market. Sentiment V2 is an undercollateralized (leveraged) lending protocol on Arbitrum that aims to optimize the construction of complex onchain portfolios.