Multiply
Increase or decrease the exposure to your collateral asset in one transaction.
Last updated
Increase or decrease the exposure to your collateral asset in one transaction.
Last updated
Oazo Apps 2023
Summer.fi Multiply is a feature that allows you to immediately utilize borrowed tokens to buy more collateral within Summer.fi. This means that you can increase or decrease your exposure to a single asset without having to perform multiple transactions or go to other apps to perform the exchange.
As a user, you can deposit collateral in a position to borrow DAI, USDC or other debt tokens as a funding source to purchase more collateral, multiplying your exposure to the asset all in one single transaction.
With Summer.fi Multiply, you can use your ETH, wBTC, stETH, rETH or other supported tokens across available protocols to create a multiple position and take advantage of upward trends of the supplied collateral.
Summer.fi Multiply employs the standard functions of base protocols while also adding new integrations to efficiently provide these features: it sources flash loans from the most liquid places to guarantee cheapest execution and it sources liquidity from 1inch DEX aggregator, to guarantee the best price when swapping debt or collateral.
You can take advantage of these actions to open a Multiply position without the need of a pre-existing position.
By opening a Multiply position you will be able to deposit collateral, select a loan to value and execute a single transaction which will open a position in the selected protocol, Flash loan the required amount of tokens to swap for collateral, lock this collateral into the position, and generate enough debt to payback the Flash loan. This will leave you with a position with at least a 1x multiple exposure, up to 5x depending on the collateral you choose. You can check tutorials for each protocol on their respective section in the left-hand menu.
After opening a Multiply Position you will be able to adjust it with just one transaction by selling or buying more collateral according to your preferred risk and to the market conditions. You should always monitor your Multiply position loan to value to avoid liquidations.
Summer.fi charges a fee per Multiply action of 0.2% over the required swap. Flashloans use different protocols on each chain, but we strive to get our users the lowest price, this means that we source free flash loans as they are available. Multiply Positions will pay an ongoing borrow rate to the respective protocol and that changes with each protocol demand, utilization and loan to value available. As usual, gas fees will apply, with the value dependent on the network conditions. Standard actions that are free in the protocol are always free in the app.