Getting started with Summer.fi
Dear Bankless Nation,
Happy holiday weekend to our American readers, in the spirit of summer fun, we've got an apt tactic for you. Today, we're walking you through the revamped and rebranded Oasis.app, now called Summer.fi ☀️
- Bankless team
As the DeFi landscape continues to evolve, we're seeing more and more platforms stepping up their game to provide users with a more efficient experience. Today, we're going to take a closer look at one such platform, Summer.fi, which has recently undergone a significant rebrand and expansion.
- Goal: Get started with Summer.fi
- Skill: Beginner
- Effort: 30 minutes
- ROI: Experience a revamped DeFi platform
Summer.fi: DeFi Made Simple and Secure 🔆
- 🏦 Summer Borrow: Lets users open a vault, deposit crypto collateral, and borrow against that collateral, with the ability to manage and adjust the vault as needed. More Info
- 🔂 Summer Multiply: Lets users increase or decrease their exposure to their preferred crypto collateral without having to perform multiple transactions or go to other apps to perform the exchange, essentially multiplying their exposure to the asset all in one single transaction. More Info
- 🪙 Summer Earn: Lets users deposit ETH into Aave yield strategies or deposit DAI into Maker’s Dai Savings Rate (DSR) module, which pays out a cut of the revenues MakerDAO generates in the form of DAI. The current DSR yield is 3.49% annually. More Info
The platform recently underwent a significant rebrand, moving away from its Maker-centric Oasis.app roots to embrace a new identity as Summer.fi. The shift also marked a significant expansion of the platform's capabilities, which now include support for Aave (both the V2 and V3 protocols) and the Optimism layer-two (L2) scaling solution.
How to use Summer.fi
Borrowing DAI with Summer Borrow
- 👛 Connect your wallet and network: Visit Summer.fi and connect your wallet, e.g. MetaMask, Coinbase Wallet, Rainbow, etc. Then use the network button at the top of the page to select between Ethereum and Optimism.
- 🔄 Choose Borrow: Choose the “Summer Borrow” option, then select the asset you want to use as collateral and the type of vault to open.
- 🔍 Simulate your position: Input the amount of collateral to deposit and – optionally – the amount of Dai to generate, and then simulate your position and review your prospective Collateralization Ratio and the Liquidation Price.
- 🤝 Set up a Proxy: Deploy a Proxy contract to interact with Maker Vaults, which you’ll only have to do once. This process requires a transaction with a gas fee, so keep in mind this payment is considerably cheaper on Optimism compared to Ethereum.
- ✅ Confirm and create your position: After the proxy is deployed, confirm your position by sending another transaction from your wallet to create your Vault. This step involves a gas fee.
- 🧮 Manage your Vault: Monitor and manage your position over time to avoid liquidations. Here you can add more collateral, withdraw collateral, generate DAI, or pay DAI back as needed.
Creating a Multiply Vault with Summer Multiply
The process of setting up a Multiply Vault is essentially the same as the process for setting up a Borrow Vault, with the added difference being that you’ll need to use the provided toggle button in the “Adjust your multiply” section of the interface to select your position’s multiply value before setting up your Proxy contract.
This is an easy avenue to long ETH, for example, but just keep in mind that the higher your multiply level, the more risk your position will have. Monitor it closely to avoid liquidation if you do take the leap in.
Depositing DAI into Summer Earn
- 👛 Connect your wallet: Visit Summer.fi and connect your wallet.
- 💲 Select the DSR option: In the Earn dashboard, select the “Earn 3.49% on DAI” strategy.
- 🪙 Deposit DAI: Use the provided interface to input how much DAI you’d like to deposit into the strategy, then press “Deposit” and confirm the transaction with your wallet.
- 🔍 Track your position: Use the Summer.fi “Portfolio” tab to monitor your yield over time until you’re ready to withdraw your DAI!
Whether you're looking to borrow against your crypto collateral, multiply your exposure to a preferred asset, or earn passive income through yield strategies, Summer.fi has you covered. The platform's recent expansion shows its commitment to going where DeFi is growing, though if you do jump in, just remember to always manage your positions responsibly!