Summer.fi, a decentralized finance platform, partners with Ajna Protocol, a noncustodial lending and borrowing system. The integration allows users to borrow and lend on assets that may not be available on other DeFi platforms, the company mentioned in a press release shared with AlexaBlockchain.
Through the integration, users can borrow or lend on curated Ajna pools using Summer.fi. The platform offers various ways to interact with the protocol and provides a more secure system by eliminating protocol-level governance and dependency on external price feeds.
Lenders using Ajna through Summer.fi can earn AJNA tokens, in addition to generating yield. They can choose a collateral asset and manage the price level for their deposit, requiring active monitoring of the collateral asset’s market price.
Borrowers who use Ajna through Summer.fi can also earn an AJNA token reward. However, borrowers should be aware of an origination fee on borrowed funds and a two-step liquidation fee. The liquidation fee consists of 90 days of interest when a loan is triggered for liquidation and a 7% fee upon the first sale of collateral.
Ajna Protocol stands out in the market with its permissionless pool creation, absence of protocol governance, and lack of price feeds. It allows users to create pools for desired assets with reduced systemic risk. The Summer.fi integration provides access to select pools and functionalities through a user-friendly interface, leveraging Summer.fi’s experience in building DeFi frontends.
Users can also utilize the Multiply feature on Summer.fi to increase their exposure to the collateral asset. Ajna’s smart contracts manage liquidity, interest rates, and liquidations for perpetual loans that do not expire.
The integration benefits users seeking decentralized and secure lending and borrowing solutions for various assets, including cryptocurrencies and NFTs, as well as investment opportunities in money and short markets.
Commenting on the launch, Chris Bradbury, CEO of Summer.fi, said: “Cryptocurrency holders have been waiting for a truly decentralized, permissionless, and secure way to lend and borrow various assets.”
Greg DiPrisco from the Ajna team emphasized that the collaboration aligns with their mission to make DeFi accessible to everyone and looks forward to its impact on the industry.