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DeFi Saver Knowledge Base
  • Welcome to DeFi Saver Knowledge Base
  • General
    • What is DeFi Saver?
      • Boost & Repay
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      • Can I access DFS created positions using other apps?
      • Why did we switch to Safe?
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      • Error: "An issue was detected with this transaction that would cause it to fail" - what to do
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      • I cannot make any transactions using DeFi Saver after using Furucombo?
      • Avoiding MEV with your transactions
  • Features
    • ETH Saver
      • How does ETH Saver work?
      • Profit tracking & how does it work
      • Positions in ETH Saver
      • Are there fees?
        • Are there any costs that are not immediately noticeable?
    • Automation
      • Automation strategies
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      • Automation Fees
      • How does Automation work?
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    • Recipe Creator
      • What are Flash Loans?
      • Is Recipe Creator safe to use?
      • Pre-made recipes / Recipe Book
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    • Loan Shifter
      • Collateral Swaps
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      • Notification Monitors
      • How do I set up Notify?
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    • Smart Savings
      • Overview of Yearn
      • Overview of Convex
      • Overview of mStable
      • Why is a smart wallet needed for using Smart Savings?
      • How to start lending funds and earning interest using Smart Savings?
      • Managing existing portfolios using Smart Savings
      • The difference between APR and APY
      • Are there any security risks?
    • Bridge
    • Exchange
      • What are Limit Orders?
      • What is DCA?
  • Protocols
    • Aave
      • Aave Dashboard
      • Aave versions comparison
      • How does Aave Automation work?
      • Can I manage my existing Aave lending/borrowing portfolio using the Aave dashboard?
      • What are Flash Loans?
      • How can I long or short assets using Aave?
      • Staking Aave tokens
      • How can I tell how much interest I will earn or have already earned using Aave?
      • How can I swap my collateral or debt in Aave?
      • Migrating your Aave position(s)
      • Pendle Principal Tokens (PTs) on Aave
    • CurveUSD
      • What is LLAMMA in CurveUSD?
      • How do you create a loan in CurveUSD protocol?
      • Does CurveUSD charge any fees?
      • Is there a standard (hard) liquidation in CurveUSD?
      • What are bands in CurveUSD?
      • Why do I need a Smart wallet for CurveUSD?
    • Compound
      • Compound Dashboard
      • Can I manage my existing Compound lending/borrowing portfolio using the Compound dashboard in DeFi S
      • How to earn and withdraw COMP tokens
      • How can I tell how much interest I will earn or have already earned using Compound?
    • Fluid
      • Intro to Fluid
      • Liquidity Layer
      • Lend Protocol
      • Vault Protocol
      • DEX Protocol
      • DeFi Saver-supported Features
    • Liquity
      • Liquity Dashboard walkthrough
      • What is a Trove?
      • Liquity Redemptions
      • How to stay protected from redemption risk in Liquity
      • How do Liquidations work in Liquity?
      • What are the key benefits of Liquity?
      • Does Liquity charge any fees?
      • What is a Stability Pool?
      • What is the "Debt-in-Front" value in Liquity?
      • How can I earn LQTY tokens?
      • Why do I need a Smart wallet for Liquity?
    • Liquity V2
      • Intro to BOLD
      • Borrowing Rates and Redemptions
      • Collateral Ratios
      • Troves as NFTs
      • Revenue Distribution and Forkanomics
      • LQTY Staking
      • DeFi Saver-supported Features
    • Chicken Bonds
    • MakerDAO
      • Managing the Dashboard
      • Automation options for MakerDAO
      • What is a CDP and why should I be interested in opening one?
      • How do Boost & Repay work?
      • How does CDP Automation work?
      • Can I transfer my MakerDAO Vault to a different address?
      • Can I manage MakerDAO Vaults created using other apps at DeFi Saver?
    • Morpho Blue
    • Reflexer
      • Reflexer Dashboard walkthrough
      • How can I start borrowing or leveraging using Reflexer?
      • What makes Reflexer unique?
    • Spark
      • Spark Dashboard walkthrough
      • What is sDAI?
      • Liquidations in Spark
  • Legal
    • Terms and Conditions
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How do Boost & Repay work?

PreviousWhat is a CDP and why should I be interested in opening one?NextHow does CDP Automation work?

Last updated 1 year ago

Boost is a leverage increase option that can increase your exposure to the selected asset by taking on more debt.

More specifically, Boost generates more DAI, swaps those DAI for the used collateral and instantly adds those new funds to your MakerDAO Vault, increasing your leverage and exposure to that asset.

For example, if you have an ETH Vault, Boost will:

  1. Generate selected amount of DAI

  2. Swap those DAI for ETH using one of the integrated liquidity sources

  3. Add the new ETH to your Vault

All three steps are completed within one transaction.

Boost is most often used by those who utilize the MakerDAO protocol as a decentralized option for longing ETH or other supported assets. You would either use Boost when the market dips, to benefit from a potential recovery, or you could use it when you believe the market will continue moving up.

If you're interested in learning more about longing assets with decentralized finance protocols, we recommend reading our post.You can also configure Automation to automatically boost your Vault in case market keeps going up. We wrote about the potential benefits of this in our post.

Repay is a deleveraging option that can decrease your debt and exposure to the selected asset by unwinding your position.

More specifically, Repay takes out locked collateral, swaps it for DAI and uses the DAI to instantly pay off part of your debt, decreasing your debt and increasing your collateralization ratio.

For example, if you have an ETH Vault, Repay will:

  1. Take out selected amount of ETH

  2. Swap the ETH for DAI using one of the integrated liquidity sources

  3. Use the newly obtained DAI to pay back part of your debt.

All three steps are completed within one transaction.

Repaying can be extremely useful in case of market drops, when you need to make urgent actions to protect your Vault from liquidation.

However, Repay can also be used as an option to clear your debt when market moves up and you feel it's a good time to close out your leveraged position and take profits.

How to long or short any asset using DeFi lending protocols
Automation performance analysis