Navigating DeFi with Summer.fi: A Deep Dive into Features and Functionality
Looking for a platform to deploy capital into DeFi and manage all in one trusted place? This is the aim of Summer.fi. This platform offers users a diverse range of services to enhance capital returns through decentralized yield opportunities.
Previously Oasis.app, the project was born as one of the first launched by MakerDAO in 2016. It became a standalone entity in 2023 with an expansion of capabilities, notably support for Aave protocols and Layer-two scaling solutions. There are three main products, advanced automation features, and a first-rate UX.
Managing Assets with Summer.fi Vaults
Summer.fi’s Vaults are easy to set up financial instruments for management of DeFi crypto assets. Vaults have automation features, such as auto-buy and auto-sell functionalities, enhancing user control and strategy implementation.
Via the Discover feature, users can explore Vaults in the ecosystem and examine what others are doing. The Follow Vaults feature enables saving Vaults of interest.
Summer.fi Borrow
This feature enables users to both borrow and lend their funds. Users open a Vault, deposit crypto collateral, borrow against that collateral, and manage and adjust the Vault as required. If users choose to borrow DAI, they can gain extra liquidity for trading, spending or saving. Different collateral types, rates and ratios are available to suit risk profiles. Users can repay at their own pace, providing their Vault is properly collateralized.
Summer.fi Multiply
This feature enables users to increase or decrease exposure to their preferred crypto collateral without need of multiple transactions or going to other apps to execute. Users can multiply their exposure to a cryptocurrency using flash loans, with support for popular collateral types like ETH and wBTC. Collateral can be deposited to borrow DAI, USDC or other debt tokens as a funding source for more collateral. ETH, wBTC, stETH, rETH and other supported tokens across available protocols can be used to create a multiple position, taking advantage of upward trends of supplied collateral.
Summer.fi Earn
This feature enables users to easily access curated DeFi products via which they can place deposits in positions to earn yields. Earn is a full self-custody solution for entering and exiting such positions. Summer.fi offers ways to enhance yield, notably with StETH. In the process, Summer.fi initiates a flash loan from the Maker Protocol, borrowing Dai. This borrowed Dai is then deposited into the Aave Protocol. Subsequently, ETH is borrowed from Aave until a desired multiple level is achieved. The borrowed ETH, combined with the user’s initial deposit, is exchanged for StETH via 1Inch.
Here is the ultimate video guide from Summer.fi on YouTube “DeFi in 2024: Three Awesome Crypto Use Cases”.
Supported Cryptocurrencies and Protocols
Summer.fi supports more than 20. These include DAI, Ethereum, wstETH, LINK, MANA, MATIC, wBTC, renBTC, GUSD, YFI, and UNI. The platform also integrates with several protocols to provide users with diverse opportunities.
1. MakerDAO
Responsible for issuing the stablecoin DAI, users can leverage MakerDAO within Summer.fi to manage their crypto assets and participate in stablecoin-related activities.
2. Ajna
The oracle-less, permissionless, zero-governance protocol Ajna is integrated into Summer.fi to enhance the reliability of data feeds for smart contracts.
3. AAVE
Summer.fi is integrated with lending platform AAVE. AAVE is available both in Ethereum mainnet and supported L2s.
4. Spark Protocol
Spark is a non-custodial DAI-centric money market protocol, a fork of Aave v3.
5. Layer 2 Solutions
Summer.fi has integrated Layer-2 solutions Arbitrum and Optimistic Ethereum to enhance scalability and reduce transaction costs.
Fees
Summer.fi’s fees are certainly competitive within the DeFi ecosystem.
Borrow
No fee; users pay transaction gas costs in ETH. If using automation features, Multiply actions are used in the background incurring fees.
Multiply
0.2% of the required swap, settled in Dai, plus transaction gas costs in ETH.
Earn
0.07% of the amount swapped to close or decrease the position, settled in Dai, plus transaction gas costs in ETH.
Stop-Loss
A 0.2% fee, settled in Dai, to close a Vault, plus transaction gas costs in ETH; additional fees apply when protection is triggered, settled in Dai.
Additionally, there are “variable annual fees” that accrue over time for usage of the underlying position.
Conclusion
The platform’s transition to Layer 2 scaling solutions, collaboration with protocols like Ajna, and innovative strategies such as StETH Earn testify to its dedication to cutting-edge DeFi services. Summer.fi provides the tools, services and support required for seamless crypto asset deployment and management. Summer.fi delivers, emphasizing its commitment to evolving alongside the developing DeFi landscape.