6 Reasons why Spark is #BetterOnSummer
Since Spark Protocol launched as Sub-Dao from MakerDAO last year, it has seen tremendous growth as users use it to borrow against and lend their capital. In fact, it’s one of the fastest growing protocols by TVL in the last 6 months. And over that time, we’ve been busy behind the scenes building functionality on top of Spark that can massively improve the experience for all users, big or small, to help do more with the capital they have. Here are 5 reasons why using Spark in Summer.fi is better than anywhere else…
1 - Recursive borrowing and payback in one transaction
Probably the feature Summer is known for most is available on Spark Protocol through the Multiply feature. This allows you to perform multiple steps in a single transaction, such as depositing capital, borrowing against it, buying more capital with the borrowed debt, and depositing that back into the Spark position. This allows you to get to 2 or 3x exposure in a single transaction, or repay using your collateral and even close in one step without needing any balance in your wallet.
2 - Multiple independent Spark positions using the same wallet
One big frustration on Spark, and Aave - from which Spark is a fork of, is the ability to have multiple positions, independant of each other, from the same wallet. This means you can’t be a lender of Dai for example, and have a ETH/USDC borrow position and a WSTETH/ETH yield loop position. By utilising the power of Summers Smart Accounts, you can have as many Spark Protocol positions managed on a single wallet as you like.
3 - Reduce the risk of ruin with Stop-Loss
Every DeFi user constantly fears that crypto might suffer a huge price drop when you sleep, or even just away from your computer. And it’s justified, its happened multiple times over the last 5 years. But this fear can be heavily reduced using the most popular and proven self-custodial automation feature in DeFi, Stop-Loss from Summer.fi. Stop-Loss allows you to set an LTV; if crossed, it will immediately close out your position to the debt token. Not only saving you collateral price loss and protects you from the liquidation penalty.
4 - Optimise your positions with Automated Buy and Sell operations
Gone are the days of feeling like you missed a good buying opportunity or should have sold a bit earlier - with automation from Summer.. No need to find the capital from elsewhere, use the debt and collateral from your position to take full advantage of the market, without having to be sat at your computer.
5 - More information to make more informed decisions
Understanding your position's date is essential for good risk management, so in Summer.fi you'll have all the info needed clearly displayed. The liquidation price is essential because it indicates the market price at which your assets are at risk of being sold off to cover the loan—knowing this helps you manage risk effectively. Keeping your Loan to Value (LTV) ratio within safe margins is crucial to prevent the liquidation of your assets; it gives you a clear idea of how much you've borrowed relative to the value of your collateral.
Knowing your Net Value is fundamental as it reflects the current worth of your investment in a clear way, with all the info aggregated in one place. Your Buying Power represents the amount you can still use to manage your position, giving you flexibility and the ability to respond to market movements. In summary, this information is indispensable for making informed decisions, managing risks, and maximizing the potential of your position.
6 - Earn $SPARK tokens
Okay, this one isn’t only on Summer, but with all the added value features above, it’s even easier and better to earn $SPARK tokens when using Spark Protocol through Summer.fi - all you need to do is look for the shiny yellow sparkles for the supported pools. 2% of the 4 year total token allocation will be available to farm until 20th May 2024. You can see full details of the Spark Airdrop here: https://forum.makerdao.com/t/proposed-spark-pre-farming-airdrop-formula/21786
And now, if you’re sad that you already opened a position on Spark but not through Summer.fi, you can now easily migrate those owned by EOAs through Summers easy to use migration tool - the same goes for Aave positions too. Just head to Summer.fi and connect your wallet, and any positions available for migration will be highlighted.
Article written by https://twitter.com/chrisbducky
Getting in touch
If you have any questions regarding Summer.fi, contact us at support@summer.fi or our social media.