What is Automated DeFi Position Management?
DeFi decision-making can be difficult. Sometimes, you have to be set up with your wallet set up or laser-focused on the markets to take advantage of a price move.
Another factor in DeFi position management is the emotions we all bring to our positions and, ultimately, the outcomes we hope to achieve. However, for some, those emotions when managing a position can be more of a hindrance than a help. That's where Summer.fi automated DeFi position management comes in.
Learn all about Summer.fi automations on our YouTube →
The security hurdle
Before we understand DeFi automations, let's address the elephant in the room. DeFi is about decentralization, security, and putting control back into the hands of users, not some third party.
So, do automations nullify DeFi's vision and promise? No!
Position Automations on Summer.fi are fully on-chain, use on-chain price oracles, and can only execute transactions you specify because they use immutable smart contracts. What does that mean? it means that whatever automation parameters you choose can only executed; no one else can ever change or alter them.
The purpose of automated position management in DeFi
Great outcomes in DeFi are simply the culmination of the decisions that you make and the actions that you take as a result. Why leave your decisions to chance or let them be influenced by a sudden burst of emotions?
Automated Position Management, at its core, allows you to automate your decision-making for your positions.
What do you decide on in your position?
Automating risk Decisions
Protecting a position is first and foremost. For most users, making decisions about your Liquidation Price or current LTV is always top of mind.
Automated DeFi Position management tools, such as Stop Loss, Trailing Stop Loss, and Auto Sell, allow you to automate your risk actions.
- Close your position when things get too risky
- Payback some debt and decrease your LTV when prices start to get to levels that you don’t like
Automating profit Decisions
The core of the decisions you make and the core actions you take on your positions are profits.
- When should you take profits?
- At what price?
- How often?
Summer.fi Automated DeFi Position management tools like Auto Take Profit allow you to focus on those key questions and let your automation setup do the work. Instead of you keeping a constant eye on the market.
Automating opportunity Decisions
The chance favours the prepared market participant when opportunity strikes in crypto markets.
- Will you be buying your wallet set up?
- Will you have the capital on hand to take advantage?
- Will you only find out about a big sell off or buying opportunity when its too late?
Summer.fi Automated DeFi Position management tools like Auto Buy and Trailing Stop Loss (and many more to come) allow you to set up the points in the market that feel like a bargain or big opportunity to you. Simply set it up and let the automations put your position into place when the opportunity strikes.
The most straightforward setup, with hands-on support
Automated DeFi Position Management works great and executes well, but it does require you to be thoughtful in your setup. Namely, the decision that you are seeking to automate. Good decisions lead to good outcomes.
The interface that Summer.fi has for enabling Automated deFi position management is the best in the industry, but sometimes you might require a bit more help. No problem; simply hop in our Discord, and we will happily help you get set up.
How do you start with automated DeFi position management on Summer.fi?
- Starting Fresh: If you're new and don't currently have a position, you can easily set one up directly on Summer.fi.
- Migrating Existing Positions: If you already have a position on platforms like Spark or AAVE, you can seamlessly transfer it to Summer.fi.
- Enhancing Summer.fi Positions: For those who already have positions on Summer.fi, you can activate any of the supported automation features to optimise your position.
Article written by Jordan Jackson
Getting in touch
If you have any questions regarding Summer.fi, contact us at support@summer.fi or our social media.