⛱️Features/Services

Supercharge your capital and unlock new possibilities.

1) Borrowing/Lending (capital market efficiency)

SummerTime enables you, an LP in such AMMs, e.g., Uniswap, to borrow against their yield-bearing liquidity by using it as collateral. This allows you to access more value from your investments without losing your liquidity positions. You can borrow up to 90% of your invested value by minting an over-collateralized decentralized inclusive stablecoin named SHELL. By doing this, SummerTime ensures the stability of its stablecoin, SHELL, and the overall efficiency of capital allocation across DeFi.

LPs can use this additionally unlocked value from their assets for various purposes, such as increasing their exposure in these markets, buying other investments, trading, and other financial activities while ensuring their liquidity remains intact.

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2) Active Liquidity Management (capital efficiency)

Traditional automated market makers (AMMs) require liquidity providers (LPs) to allocate liquidity equally across the entire price range of an asset pair, even in parts with low trading activity. This can result in inefficient use of capital, missed opportunities, reduced returns, increased risk exposure, and impermanent loss for LPs. LPs can use strategies such as concentrated liquidity, ranged orders, and dynamic allocation available in these next-generation AMMs, such as Uniswap V3, to optimize their capital allocation and mitigate these disadvantages.

Concentrated liquidity involves concentrating liquidity within specific price ranges, which can lead to higher returns, reduced risk exposure, and optimized capital efficiency. By limiting exposure to suboptimal price ranges, concentrated liquidity can also reduce impermanent loss. However, optimizing capital efficiency can be complex, daunting, and time-consuming for LPs.

SummerTime aims to automate capital efficiency for LPs in a transparent, non-custodial, and secure way. It sets up dynamic strategies using smart contracts that adjust liquidity concentration based on market conditions, considering LPs' risk appetite, expected returns, and other factors such as trading fees and slippage. This approach leads to higher returns, improved capital efficiency, and mitigates impermanent loss while minimizing LPs' efforts.

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3) Yield-optimization

SummerTime also offers a yield-optimization, just like Beefy Finance, as a value-added service to help LPs maximize their returns on their liquidity pools. It will automatically claim your rewards from any yield farming contracts you were part of periodically and automatically compound them back to your liquidity.

Each LP collateral accepted has its unique strategy for yield farming, which generally involves reinvesting the earned rewards back as the crypto assets staked in the liquidity pools. A simple explanation is it farms the rewards given that it farms the rewards and reinvests them into the liquidity pool. This compounds the amount of interest received and increases the amount staked that the yield is based on. A yield optimizer can repeat this process thousands of times a day.

With SummerTime's unique built-in rewards calculation system, the rewards earned from their respective yield farming pools can pay down the loan automatically over time, providing a hassle-free experience for LPs.

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4) Impermanent loss mitigation/protection (coming soon)

Impermanent loss is a loss that liquidity providers (LPs) may experience when providing liquidity to AMM platforms such as Uniswap. When you invest in a liquidity pool on Uniswap, you provide equal amounts of two different cryptocurrencies to the pool. The pool then uses these assets to facilitate trades between users. The value of these cryptocurrencies can change relative to each other over time. Impermanent loss happens if the value of one cryptocurrency in the pool increases much more than the other, you will have less of the more valuable cryptocurrency in your pool than you originally invested.

This is called impermanent loss because if you had just held onto your original investment instead of providing liquidity to the pool, you would not have experienced this loss. It is called "impermanent" because if the value of the cryptocurrencies in the pool returns to their original ratio, the loss will disappear.

However, the impermanent loss is not always bad as LPs can earn transaction fees, and it can be mitigated by using strategies such as ranged orders or hedging exposure to underlying assets. Ranged orders in Uniswap V3 allow LPs to provide liquidity within a specific price range, mitigating impermanent loss. Additionally, ranged orders can help LPs be more capital efficient by allocating their capital more precisely to specific price ranges. This means they can provide liquidity with less capital while still earning fees and mitigating impermanent loss.

Your one-stop-shop for your liquidity (add-on services)

To summarize our LP offerings, we are like MakerDao, Beefy Finance, Alchemix, and Arrakis Finance, who had a baby born with all these superpowers.

As an LP provider, we unleash the full potential of your liquidity:

1. Keep your sticky liquidity positions and all of their upsides, e.g., earning the swap fees

2. Continue to earn rewards in the originated decentralized AMM farming pools

3. Optimize your yield by compounding the originated AMM rewards automatically to earn more

4. Keep your positions 10x capital efficient automatically, and earn even more

5. Borrow SHELL, do wonders, and let your loan be repaid whenever you want or over a period, automatically using your earned fees or reward.

6. Earn even more rewards while gaining ownership over the SummerTime platform — SummerTime's SUMMER governance tokens.