Use-case

DeFi Saver's Loan Shifter tool gives you the freedom and flexibility to move your positions from protocol to protocol.

The shift is handled in a single transaction, so your loan can be shifted without needing to unwind or repay it manually.

In turn, this allows users to:

  • Capitalize on better APYs provided on other protocols

  • Reduce borrowing costs by switching to protocols with lower fees or more favorable collateral requirements

  • React to market conditions by switching their collateral or debt assets

  • Access new features that a different or newly integrated protocol offers

Let's look at an example where a user would like to use Loan Shifter to target better APY:

How to utilize Loan Shifter

Say we have an active position on Aave V3 with:

  • 40 ETH in collateral ($63,762)

  • $30.000 USDT in debt

The current Net APY for that position is +0.23% - We know this since this metric is displayed on our position, but also, we can navigate to the "Market" section of Aave V3 and look at:

  • ETH's Supply APY (2.02%)

  • USDT's Borrow APY (4.04%)

We then navigate to Spark's dashboard, and scroll down to the "Market" section:

We notice that:

  • ETH's Supply APY is 1.98%

  • USDT's Borrow APY is 2.85%

So, we conclude that, if we had the exact same position, but on Aave V3 - We'd have a Net APY of +1.18%

But instead of:

  • Closing our Aave V3 position

  • Paying the fees associated with that

  • Opening the same position on Spark

  • Paying the fees associated with that

We decide to use Loan Shifter:

  1. Open up Loan Shifter from the sidebar:

  1. We select our current position on Aave V3 Core, and choose that we want to move it to Spark:

  1. Underneath the inputs, we can see the before and after calculations for our position. We additionally conclude that our Safety Ratio will increase and that we'll have a bit more Borrow Power.

  2. We decide that this works for us, and click "Shift"

Our position has now been moved, with the new APY on display:

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