Tutorials and Guides

Learn more about using Ajna protocol in Summer.fi with handy tutorials and guides

How to borrow using Ajna

As a permissionless lending protocol Ajna supports assets in pools of paired assets. You can borrow selecting against the assets you have following the product finder as it it's shown below. You will be able to select how much collateral to deposit, how much to borrow and you will see your collateralization ratio and the liquidation price. Always follow your liquidation price and adjust accordingly your position to avoid liquidation.

How to earn using Ajna

Ajna is a permissionless borrowing and lending protocol. It supports pools of asset pairs that users can borrow from or lend into. The pools are denoted by the collateral token and the debt token. For example, there is an ETH/USDC pool where ETH is the collateral token and USDC is the debt token. In simple terms, there are two sides to the pool. Our Earn product allows you to lend into an Ajna pool and earn yield on the assets that are drawn by Borrowers. Let’s expand on the ETH/USDC example above. As a lender you deposit USDC into the pool, Borrowers take the USDC as debt and pay the pool a borrowing rate which the lenders take as yield. The Ajna protocol does not rely on oracle price feeds in order to determine the lending price of assets. Instead, the lenders decide which price they are willing to lend at against the collateral asset in that pool. Once you have selected your product, you will see the position creation view. Here you will need to enter the amount of tokens you would like to deposit and the lending price using the slider. Please note that the colours on the slider denote important ranges within the Ajna pool. The selection that you make can impact a number of things including the yield that you earn, the fees that you pay and the risk level of your deposit. If you need help deciding on a lending price, you can follow this guide.

Are there any fees?

Summer.fi does not currently charge any fees for using basic Ajna Earn positions. However, users should consider any network fees required to open a position.

Deposit fees

The Ajna protocol encourages lenders to deposit their liquidity into the active liquidity range (the orange section on the slider). If you deposit below this range, you will be charged a deposit fee equivalent to 1 day of interest in the pool.

How to Multiply on Ajna?

Ajna is a permissionless borrowing and lending protocol. It supports pools of asset pairs that users can borrow from or lend into. The pools are denoted by the collateral token and the debt token. For example, there is an ETH/USDC pool where ETH is the collateral token and USDC is the debt token. In simple terms, there are two sides to the pool. Multiply allows you to increase or decrease your exposure to the collateral asset with one click.

Let’s expand on the ETH/USDC example above. When using Multiply you deposit ETH into the pool, you will borrow USDC and use this to purchase more collateral, increasing your exposure to ETH without the need for multiple transactions. This is made possible using flash loans from the most liquid places to guarantee cheapest execution. It sources liquidity from 1inch DEX aggregator, to guarantee the best price when swapping debt or collateral.

Step by step this means that when opening a Multiply position you deposit collateral, select a loan to value and execute a single transaction. This transaction which will open a position, 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.

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.

Are there any fees on Multiply?

Summer.fi fees

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.

Originator fees

The Ajna protocol charges an originator fee whenever a user draws debt. This is applicable to Borrow and Multiply positions, your originator fee will be clearly displayed when you create your position.