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Positions

Positions are smart contracts that hypothecate borrowers' collateral and debt, giving the borrower flexibility with composing unique positions or strategies. A borrowers positions isolates their assets from other borrowers, meaning collateral on Sentiment is not pooled.

Borrowing on Sentiment differs from existing money markets like Aave v3 or Compound III in 2 ways:

  1. Borrower collateral is not rehypothecated
  2. Borrower collateral is not pooled.

Collateral Isolation​

Leverage in Sentiment is not achieved through "looping" as it is money markets. Instead borrowers can borrow up to 20x the value of their collateral in a specified loan token, and have the flexibility to allocate the proceeds in ways defined by the lending pool configuration. This is a cheaper and more efficient way for borrowers to access leverage and it is made possible only by Positions.

A borrower's collateral and debt are completely isolated from other positions, and such borrowers can have the flexibility of maintaining multiple positions without inflicting risks across positions.

Borrowers collateral on Sentiment are not pooled or rehypothecated, which provides superior security guarantees for users within the protocol.

Positions​

Positions are how borrowers manage their debt and assets within Sentiment. Sentiment positions are purposefully built to manage any type of debt and asset composition. Users can efficiently borrow from 1 or more debt pools, using 1 or more collateral types. This allows for unique portfolio compositions such as; cross-margined, delta-neutral, pair-leveraged and much more!

Position Manager​

Position Manager is a contract that acts as a control center for all borrower Positions on Sentiment. The Position Manager contains all the logic necessary for any mutation of a position, including, but not limited to: lending; borrowing; external actions.

The Position Manager contains a process function which enables positions to interact with exogenous protocols and contracts. This allows for unique functionalities such as: swapping tokens via dex aggregator; providing liquidity to external markets and much more.