What is a Smart DeFi Account?

Learn about Summer.fi Smart DeFi Account and supercharge your DeFi experience. The way to get the advanced self-custody experience.

INTRODUCTION

Summer.fi Smart DeFi Account is a smart contract that allows you to easily interact with supported protocols and compose advanced transactions to do more compared to what’s possible from a standard wallet.

For example, with a Smart DeFi Account you can set up stop losses in supported protocols, borrow and swap in a single transaction, repay your positions with the collateral already deposited and more.

Benefits

A Smart Defi Account is purposefully optimized to be gas efficient, and therefore opening a Smart Defi Account is cheap. You can use your Smart Defi Account as long as you need, and it’s always going to be on the Ethereum blockchain. You only need a single Smart Defi Account to start using Summer.fi and its features, but you are not limited to one.

A powerful feature of Smart Defi Accounts is that for protocols like AAVE you can manage more than one position from a single wallet by creating multiple Smart Defi Accounts. When you start using Summer.fi you will be asked to first create a Smart Defi Account paying a low gas fee to the Ethereum network. Once this transaction is confirmed, you will be able to deploy your capital with ease.

When you are asked to approve tokens, you will authorize the Smart Defi Accounts to use your tokens to make atomic transactions. As you make an advance transaction in Summer.fi like a borrow and swap, the Smart Defi Account is responsible for setting and removing the approvals in the called contracts. This means that if a transaction includes Uniswap it will set and remove approvals in a single transaction after executing your swap. This is a safer design for approval management compared to standard wallets. We take safety as a number one priority, and the Smart Defi Account allows us to reduce the exposure to common approval bugs or errors in DeFi.

TECHNICAL OVERVIEW

The DeFi Smart Account Factory is the contract in charge of creating each DeFi Smart Account.

You can read the audit here: https://chainsecurity.com/security-audit/oasis-position-manager/