Twitter Sentiment Cellar
Let’s discuss a future high yield strategy that can be built out from the current strategies. This future strategy would have strategy providers monitor twitter feed sentiment in real-time and off-chain. Once the sentiment for a specific coin turns negative for 2 consecutive days, the Cellar will liquidate its position of these coins, and move into either stablecoins or another coin that sees early positive sentiment. This dynamic strategy can be achieved by using the architecture of Sommelier. First, strategy providers perform the complex sentiment analysis off-chain and once a market change is found, sends an instruction to the 2) Sommelier validators which decide to execute the Cellar fund re-position.
Benefits To Users
Users benefit from this strategy because they can get access to sophisticated sentiment analysis strategies without having to perform such analysis themselves. This provides them with a share of the increased APY from such a sophisticated strategy. Further, since the Cellar re-positions its funds as a whole, gas-fees are effectively spread across all users, making the cellar much more gas-efficient than performing transactions without the cellar. The strategist can perform a collection of off-chain calculations, and push the action to the cellar. Moreover, early users will be rewarded Somm tokens for using the Sommelier protocol.