Move your loan for better APYs or lower risk
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
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:
Open up Loan Shifter from the sidebar:
We select our current position on Aave V3 Core, and choose that we want to move it to Spark:
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.
We decide that this works for us, and click "Shift"
Our position has now been moved, with the new APY on display:
Shifting both collateral and debt assets at the same time is not possible.
Related Articles:
Loan Shifter
Compatibility
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