The Truth About DeFi Automation
The benefits of Automated Position Management in DeFi are huge
Automated Position Management in DeFi has been a game changer for a lot of users in the ecosystem.
Think for a moment about your favourite DeFi protocols… Maker, AAVE, Spark, Morpho or Ajna among many others.
What do you love about them? most likely you love what they allow you to do with your crypto asset capital. You can get liquidity, or you can multiply your exposure, or you can earn on your assets.
Now think about what you don’t love so much about these protocols. For a lot of users, its the experience of actually managing their positions that can be most frustrating. Managing their LTVs, or managing their liquidation risk, or managing when to take on more risk. Basically, many of the key attributes that Automated Position Management enables you to set and forget.
Automations biggest hurdles
Even though Automated Position Management in DeFi is a technical innovation that makes using protocols 10x better, many users still have apprehensions about using them.
Generally, these apprehensions usually fall under one of two categories:
- Control over user funds: Some users think enabling automations can alter who or what has control over their funds.
- Making mistakes getting set up: Some users think that making a mistake when setting up automations is irreversible and a common occurrence.
Dispelling automation myths: How automations actually work
Dispelling myth #1: users think enabling automations can alter who or what has control over user funds.
Summer.fi Automated DeFi Position management is 100% non custodial. ONLY you have control over your funds.
Summer.fi Automated Position Management tools are 100% self custodial. That means that no matter what users are still the only ones in control of their assets after they enable automations. Summer.fi, nor anyone else ever has control over your funds after you set your preferred Automated Position Management tool.
Another key aspect of this is that each Automated Position Management tool uses the oracle of the underlying protocol tethered to the automation. Thereby keeping the a key part of every automation decentralized and not introducing new risks outside of the protocol that you are using.
Dispelling myth #2: Making mistakes getting set up: Some users think that making a mistake when setting up automations is irreversible and a common occurrence.
At Summer.fi automation set up is intuitive, simulated, and can always be changed.
Unlike other DeFi Automated Position Management tools, Summer.fi emphasized ease of use and simplicity of set up. We make each step of the process intuitive and most importantly, we always provide a simulation of what you can expect to happen next and when. For example, if you set up Auto Take Profit automation you will always know when the automation will trigger and what will happen as a result on the screen.
Another key thing to keep in mind is that all automations can be changed, even after you set them up. So long as your automation does not trigger, you can always remove or modify your automation parameters, giving you maximum flexibility when getting set up.
Which will you try first?
Now that we’ve dispelled two of the most common myths about Automated Position Management in DeFi, which will you try first?
Looking to protect yourself against liquidation for your Maker, Spark or AAVE postions? try the following automations:
Stop Loss: DeFi’s most trusted way to free yourself from the worry of liquidation.
Trailing Stop Loss: The best way to capture profits and protect yourself from losses.
Auto Sell: A less agressive approach to reducing liquidation risk.
Looking to take advantage of market opportunities with your Maker, Spark or AAVE postions? try the following automations:
Auto Take Profit: The best way to automate your exit strategy
Auto Buy: Never miss another buying opportunity
Getting in touch
If you have any questions regarding Summer.fi, contact us at support@summer.fi or our social media.
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