The difference between Borrow and Multiply Vaults

There are some differences between borrow and Multiply vaults.

Summer Multiply provides a set of new features on top of Summer Borrow. When you use Summer Multiply you get a new dedicated interface for a Multiply position, showing you Buying Power, Net Value, Multiple number and more information in the comparison screen. This information is only applicable in a Multiply position and will help you to better manage your position.

With a multiply Vault you get the ability to perform multiply actions, which use flashloans to make the trades, deposits and withdrawals of the extra collateral all in one transaction. These multiply actions have a fee of 0.2% of the size of the trade that takes place in each transaction. If a transaction is a Multiply action the fee will be clearly shown in the order summary screen.

Under the hood Multiply and Borrow are the same vaults or positions, so you can use your Multiply position to deposit, borrow and generate Dai, or any other collateral. These actions are available under the “Other Actions” tab, and they are free as always.

Just note: a different wording is used when it is connected to Multiply - "Deposit Dai" for instance is the same as "payback". "Withdraw Dai" is "generate Dai".

Multiply Vaults also enjoy a feature that allows you to close your positions instantly to either collateral or the borrowed asset, without the need for any DAI or collateral in your wallet. This Multiply actions will use a flashloan and sell all collateral needed to payback all outstanding debt. If you choose to close to Dai all collateral will be sold and Dai will be sent to the wallet. Otherwise you will keep the remaining collateral after paying all outstanding debt.

Now you know you can enjoy a more complete set of features when using Multiply to manage your Vaults.