Dashboard & Use-case

Compound V3 simplifies the borrowing experience by allowing users to only borrow a single base asset per market, which reduces protocol complexity and cross-asset risk.

Compared to other protocols, the segmented market approach provides users with:

  • Simpler and more predictable liquidation logic, as there's only one borrowable asset per market. This translates into better borrowing terms.

  • Each market isolates risk to the assets within it. This prevents cascading failures across unrelated asset pools.

  • When you supply collateral, it remains your property. It cannot be withdrawn by other users, unless your position is liquidated.

So if you're looking for a simplified, supply and borrow market, you can dive into Compound by opening a position:

Show me how:

Before opening a position on Compound, let's have an overview of the protocol's dashboard. Understanding all of the available options will help you get the most out of managing your position on DeFi Saver. So, you've navigated to Compound's dashboard by clicking the icon in the sidebar, and are met with the following screen:

Starting from the top:

  • You'll be on the "Manage" tab first, which will let you manually manage your position by utilizing the available tools.

  • The "Automate" tab will take you to our Automation options.

  • The "Notify" tab will take you to the interface where you can set up custom-tailored notifications for your position.

  • The "History" tab will show you all of the actions performed within your current position.

In the same row as these tabs, you'll find the following options:

  • The first option lets you select which version of Compound you'd like to interact with.

  • The second option lets you select which Compound v3 market you'd like to use.

  • The third option lets you select the wallet/account that you want to view.

Let's now move onto the metrics that will help you do an assessment of your position:

  • "Net APY" is a metric that represents the % by which your position's Net value will increase/decrease in a year based on the current Supply/Borrow APY.

  • You'll be able to choose the "risk ratio" that you'd like to view. For a breakdown of how ratios are calculated, please refer to this article.

  • The right-hand side "Details" tab will give you a full breakdown of your position's details, including metrics like Liquidation ratio, Borrow power used, and let's you activate E-Mode.

  • The "Automations" tab will show you any activate automations you may have for your position, while "Rewards" will show you any claimable that might be available.

  • The "Rewards" tab will let you claim any rewards that have been accumulated by your position

The final step before opening a position is to scroll down to the "Market" section:

This gives you a full overview of the available assets within the protocol, along with asset-specific metrics like:

  • Supply APY (how much interest you earn by supplying the asset as collateral)

  • Borrow APY (how much interest you pay for borrowing the asset)

  • Collateral Factor (the maximum amount you can borrow based on your collateral's value)

  • Liquidation Factor (the threshold that represents the value that your debt must remain under compared to your collateral - otherwise the position is liquidated)

  • Market info/size

With the way that Compound V3 works, you'll only get either supply interest in lending the asset whos market you've selected, or pay borrow interest on borrowing it. Supplying other assets as collateral will not provide you with any supply interest - which is why most of the APYs visible are 0%

We've now covered the basics of Compound's dashboard, so you're now ready to open a position. Let's dive right into how you can do that.

Clicking the "Create" button will take you to a new tab:

The interface is pretty straightforward - You'll be able to:

  • Select the asset you want to supply as collateral

  • The collateral amount

  • Select the asset you want to borrow

  • The borrow amount

  • View your position's metrics before opening it

If you'd rather opt to open a Leverage position, simply click on the "Leverage" tab:

The interface is a bit more complex than the first due to the nature of leveraging. Here, you can:

  • Select the asset you want to supply as collateral

  • The collateral amount

  • The leverage amount

  • The borrow amount

  • The exchange route (DeFi Saver will look to automatically find you the best one if you leave "Automatic")

  • The slippage limit

  • View your position's metrics before opening it

Whether you're ready to open a Borrow or Leverage position - the finishing touch will be clicking "Create"

If the transaction succeeds, you'll see the pop-up from above. You can feel free to press "Done" if you're not yet interested in turning on Automations.

If you're interested in Automations, please refer to our Knowledge Base articles that cover everything automation-related.

Now that the position is opened, the "Manage" tab will look like this:

The final part of the dashboard we'll cover are the manual management tools.

In the Leverage section, you'll find:

  • Boost - This tool is used to increase your exposure to the collateral asset when the safety ratio of your position increases. It does this by borrowing more of the debt asset, swapping it to the collateral asset, and supplying it to your current position.

  • Repay - This tool is used to increase the safety ratio of your position by swapping part of your collateral asset in order to repay part of the debt.

In the Add/Remove section, you'll find:

  • Supply - This tool is used to add more collateral to your position in order to increase the safety ratio.

  • Withdraw - This tool is used to withdraw collateral from your position, in turn decreasing your safety ratio

  • Borrow - This tools is used to borrow more of the debt asset from your current position, in turn decreasing your safety ratio.

  • Pay back - This tool is used to pay back part of (or the entirety) of your debt, in turn increasing your safety ratio.

In the Shift section, you'll find:

  • Collateral Switch - This tool lets you change your collateral asset to a different one of your choosing. You can input the whole amount or just part of your collateral.

  • Shifter - This tool lets you move your entire position to a different protocol

Underneath the tool you want to use, you'll find the "Combine with another action" option. This lets you add an extra action on top of the tool you're already using - ensuring both are handled in a single transaction:

Before executing any of these actions, the dashboard will provide you with updated metrics for your position based on the values you've input:

You're now well equipped to efficiently manage your Compound position on DeFi Saver!

We highly recommend reading through our Automation articles to get a better understanding of how you can further improve how your position is managed.

One of the main benefits of utilizing DeFi Saver's service is access to our automation options that maintain your position based on your personal inputs. Additionally, managing your Compound position through DeFi Saver provides you with numerous tools that help you increase/decrease leverage in one transaction, or even switch your collateral asset.

Automations have minimal debt requirements and their availability depends on the chain you're currently on.

Closing or Migrating your position:

The two remaining options on the dashboard that we haven't covered are Close and Migrate.

You also have the option to use the "Shift" tool, which moves your position from one protocol to another. We have an entire segment dedicated to this feature, so if you're interested, please read through the Loan Shifter article.

If you decide to close down your current position, the steps are extremely straightforward:

  1. Navigate to the main dashboard:

  1. Select the "Close" button:

  1. Choose how you'd like to close your position.

  2. Since closing from your position involves swaps, you can also (optionally) set the exchange route and slippage limit.

  3. Press "Close Compound"

The "Close (to X)" represents which asset will be withdrawn to your EOA wallet once the position is fully closed. To understand this in more detail, let's look at how the "Close" tool works in the background:

  • First, it flash loans the debt asset

  • It uses the flash loaned funds to pay back all of the debt

  • Now that your collateral is freed up, it's withdrawn

  • The collateral is then swapped to the debt asset

  • This is used to pay back the flash loan

  • The remaining funds are withdrawn to your EOA

Now, if you choose "Close to (collateral asset)", this means that it will only swap enough of your collateral to cover the flash loan, but it will withdraw the rest in the collateral token. If you choose "Close to (debt asset)", it's going to swap all of your collateral to the debt asset, pay back the flash loan, and the rest will be withdrawn in the debt token.

To Migrate a position, visit the main dashboard, and click the icon with two arrows - just next to the "Close" option:

From there, you can choose the wallet you'd like to migrate the position to:

Once everything's good to go, click "Migrate".

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