Summer.fi Review

Summer.fi is a crypto platform that allows users to borrow DAI and earn from their crypto assets. Like Cake DeFi, Summer.fi is a decentralized financial platform. Our Summer.fi crypto review will take a look at the different services and features of the platform so you can determine if they are a good fit for you.

What is Summer.fi Borrow?

The Summer.fi loan service is known as Summer.fi Borrow and is the main entry point for users to take advantage of the Maker protocol. The Maker Protocol which is also known as the Multi-Collateral Dai (MCD) system lets users leverage approved crypto collateral assets to generate Dai. Dai is a decentralized stablecoin that runs on Ethereum (ETH) which tries to maintain a value of $1.00 USD. However, unlike centralized stablecoins which are backed by US dollars, DAI is backed by collateral on the Maker platform.

By using Summer.fi users can create (borrow) DAI by locking their crypto assets. Any cryptocurrency supported by the Maker Protocol can be used as collateral for Summer.fi lending and includes ETH, WBTC and 20 other cryptocurrencies. The are a great DeFi platform to get crypto loan in Dai stablecoin with no credit check.

How Does Summer.fi Work?

Any of the collateral assets accepted by the Maker Protocol, therefore accepted by Summer.fi, can be leveraged to generate Dai through smart contracts. These smart contracts are called Maker Vaults or just Vaults as they are referred to at Summer.fi. Summer.fi Borrow is a front-end application for creating and interacting with Vaults. To access Summer.fi users will need a compatible Ethereum wallet. The current compatible wallets are:

• Metamask
• WalletConnect
• Ledger
• Portis wallet
• My Ether Wallet
• Coinbase Wallet
• Trezor
• Gnosis Safe

Proceed to the “Borrow” section of Summer.fi and click “Connect a Wallet”. Select the wallet you want to connect and click “create a new Vault” on the top right of the page. A pop up will appear for first-time users and they will be required to sign to have access to the app.

Set the accepted crypto held in your wallet that you want to use as collateral. Incidentally, each type of crypto used as collateral will need its own Vault. Choose the amount of collateral to be deposited and how much Dai that you want to generate. The dashboard will display a simulation of Liquidation Price and Collateralization Ratio. Liquidation Price is the price that the Vault will be at risk of liquidation and Collateralization Ratio is the ratio of the value of the collateral against the value of the outstanding Dai debt.

Click “Create a Proxy” and “Confirm”. A Proxy is a smart contract which enable users to interact with supported protocols and manage the Vault. A Proxy will only need to be created once per wallet and all Vaults created using that wallet can be managed through a single proxy.

Users will also have to set an allowance for their Proxy. The allowance lets users control how much the proxy contract can do with the crypto balance in their wallet such as interact with the collateral in their wallet or to pay back Dai. After setting an allowance, users will be provided with a summary and confirm the Vault creation.

A nice feature available for a small fee is Summer.fi Stop-Loss Protection. It helps users prevent liquidations on their Vaults should the collateralization ratio fall too low. Users set the minimum collateralization ratio for their Vault they are willing to accept, and a Stop-Loss action is triggered if the Vaults ratio reaches this level or drops below it. Stop-Loss can be configured to close the Vault to collateral or to Dai to prevent additional losses should the collateral price drop too much.

To pay back the Dai that was borrowed, you will navigate to the Summer.fi “Borrow” page and click “Connect a Wallet”. From the list of wallets provided select the wallet you want to connect then click on “Your Vaults” located at the top right of the page. Select the Vault that you want to make a payment to and then click “Manage Vault. Select the Dai tab and enter the amount you intend to pay under “Payback Dai”.

You will be presented with a simulation of the new Collateralization Ratio and Liquidation price once you have inputted the amount. If you didn’t setup the Dai allowance for your Proxy when you created the Vault you should do that at this time. Once this is confirmed you can review the changes to your Vault and if everything is okay confirm the operation.

Of course, Summer.fi Borrow isn’t the only way you can get Dai. It can be purchased outright on a number of crypto exchanges as you can see in a BTSE review.

Services

Summer.fi does offer other services in addition to their loan service although unlike the WhaleFin crypto platform they aren’t an all-in-one crypto service.  Their main services are Summer.fi Borrow, as discussed above and Summer.fi Multiply which will be covered in more detail.

Summer.fi Exchange

The first part of Summer.fi was seen in 2019 with the launch of Summer.fi Trade. However, in 2024 the primary products of Summer.fi are Summer.fi Borrow and Summer.fi Multiply.

Summer.fi Multiply

Summer.fi offers their Multiply feature which enables users to use borrowed Dai immediately to buy more collateral within Summer.fi. This allows users to increase or decrease their exposure to a particular crypto asset without having to perform multiple transaction or transfer to other apps to perform the exchange. In otherwards, you will be able to buy more of the cryptocurrency you are using as collateral without having to leave Summer.fi

Users deposit accepted collateral such as ETH or wBTC in a Vault to generate Dai that will be used as a source of funds to purchase more collateral, multiplying the user’s exposure to the asset in just a single transaction. Any Maker supported crypto collateral types can be used in the Multiply feature, allowing users to take advantage of upward trends in the collateral they are using.

To take advantage of the feature, users will need to open a Multiply Vault. Summer.fi provides a tutorial that walks you through the process. Multiply Vaults also have the standard Borrow features so that users can deposit or withdraw either collateral or Dai to adjust their position. Users can also easily convert a standard Vault into a Multiply Vault, thus avoiding the need to deposit further collateral or Dai.

Summer.fi Multiply uses flash loans to make the trades. If the user’s chosen collateral is wBTC and the highest exposure is chosen they can increase the exposure of their wBTC up to 4.33x.  This is essentially a Bitcoin loan no collateral transaction although its wBTC which is an ERC-20 token that represents Bitcoin so that BTC users can access DeFi applications. There are definitely some risks involved and users will need to keep track of their collateralization ratio to avoid liquidation.

Summer.fi Earn

At Summer.fi users can earn yields on their deposited Dai using the G-Uni Multiply feature. G-Uni Vaults differ from standard borrow Vaults in that they don’t provide an option to generate Dai or withdraw collateral. This is because it is intended as a position to maximize fees from Uniswap V3. The only options for the Vault are to deposit Dai and multiply to the maximum amount possible then close the position back to Dai. The yield comes from generated fees

Rates

At Summer.fi all services are charged a stability fee. This can basically be thought of as the interest rate. The stability fee is variable and changes for each Vault type based on the decisions of MKR token holders who govern the protocol. Currently these variable rates range from 0% to 4.5% depending on the token.

Summer.fi Discount Code

There are no Summer.fi discount codes available. However, there is a refer a friend program where users can earn Dai.

Summer.fi Refer a Friend

Refer a friend is one way that Summer.fi rewards its users. When a user of Summer.fi invites somebody who uses the platforms products, both the referrer and referee are rewarded with 5% of the fees generated by the referred user’s account. You can refer as many people as you like but your account can only be referred once. Users receive the 5% share for as long as the people they referred use the Summer.fi services. The rewards for refer a friend are paid in Dai and can be collected at any time.

Getting started with Refer a friend is easy.

• Go to Summer.fi and connect your Ethereum wallet
• Navigate to the “Refer a Friend” control panel
• In the control panel you will see your personal link. Click the “Copy” button next to your referral link
• Send the referral link to anybody you would like to refer

In your control panel you will be able to see each new account that accepted your referral and you will start earning Dai every time they generate fees. As you can see in a Freeway crypto review, the referral reward is not as high as Freeway offers, but users receive the Summer.fi referral fee for as long as those referred continue to use the service.

Summer.fi Wallet

The Summer.fi Dai Wallet is free to set up and can be used to buy, send and manage the user’s Dai assets. While free to set up, users will be subject to transaction fees, gas fees and other costs. Just go to the Summer.fi main page and click the “Dai Wallet” link found under products at the bottom of the page.  This will take you to the “Dai Wallet” page. Click the “Open Dai Wallet” link in the upper right conner of the page and connect your Ethereum wallet to get started and earn interest on crypto deposits, buy, Dai, send Dai and manage your Dai all from the same place.

Cryptocurrencies

The cryptocurrencies supported at Summer.fi include the following

• Dai (DAI)
• Ethereum (ETH)
• Lido’s Wrapped Staked ETH (wstETH)
• Chainlink (LINK)
• Decentraland (MANA)
• Polygon (MATIC)
• Wrapped Bitcoin (wBTC)
• Ren Bitcoin (renBTC)
• Gemini Dollar (GUSD)
• Yearn Finance Governance Token (YFI)
• Uniswap Governance Token (UNI)
• Uniswap Liquidity Provider Tokens (UNI LP)
• Curve Liquidity Provider Tokens (CRV LP)
• 10+ other cryptocurrencies

Fees

There are some fees that users will have to pay at Summer.fi depending on the service. These include the following:

• Summer.fi Borrow: There are no Summer.fi fees for the Borrow feature. Users will have to pay transaction gas costs in ETH
• Summer.fi Multiply: Summer.fi charges a 0.2% fee of the required swap for the action to be paid in Dai and transaction gas costs to be paid in ETH
• Summer.fi Earn: An Summer.fi fee of 0.04% of the required swap to set up the Vault to be paid in Dai and transaction gas costs to be paid in ETH
• Summer.fi Stop-Loss: An Summer.fi 0.2% fee of the required swap for the Vault closing action to be paid in Dai and transaction gas costs for setting up protection to be paid in ETH. There is also a transaction gas cost on the protection trigger to be paid in Dai.

The only withdrawal fees at Summer.fi are the gas transaction fees unlike the Finblox withdrawal fee which includes a network fee plus a flat fee to the platform

Mobile & App

There isn’t a mobile app or download for Summer.fi. The platform is designed to work well on any device whether it is a desktop computer, tablet or smart phone. There are no extensions and no downloads necessary, just have an Ethereum wallet.

Is Summer.fi Legit?

Summer.fi employs the best security practices and conducts smart contract and code audits on a regular basis. Users have complete control over their assets and Summer.fi is the most prominent entry point for anything related to Dai.

Contact & Support

Summer.fi has an extensive knowledge base on their platform that will answer many user’s questions. They can be contacted by email via an email contact form. The platform has an active presence on Twitter and Discord. In addition, they maintain a blog that keeps users updated on changes, new features and other information related to Dai and Summer.fi.

Conclusion

Summer.fi is a DeFi platform that is easy to use but also offers some advanced features. They have plans for additional features in the future and are a solid choice for those wanting to deploy digital assets into DeFi.