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Frequently Asked Questions (FAQs)

What exactly does Summerstone do?​

Summerstone provides automated interest rate management for your Liquity V2-based loans. By continuously monitoring market conditions, our system optimally adjusts your interest rate to keep borrowing costs low, proactively minimize redemption risk, and eliminate the hassle of manual management.

How does automated interest rate management work?​

Our system monitors key metrics continuously, including:

  • Redemption risk and debt positions
  • Market price fluctuations
  • Network gas conditions
  • Liquity protocol status and events

Based on these metrics, our algorithms determine precisely when and how to adjust your loan's interest rate, optimizing your borrowing efficiency.

How much does Summerstone cost?​

We charge a straightforward 0.3% annual management fee based on your total loan amount, enforced transparently by the protocol. For most users, these costs are offset by:

  • Reduced gas expenses from eliminating manual adjustments
  • Lower average interest rates
  • Reduced risk of redemption penalties

You can calculate your exact potential savings using our Savings Calculator.

Is delegating interest rate management secure?​

Yes. Delegation through Liquity V2 protocols is inherently safe and limited:

  • Managers only have the ability to adjust interest rates.
  • Managers cannot access or transfer your funds or modify other loan parameters.
  • Delegation permissions and boundaries are verifiable directly on-chain.

Can Summerstone guarantee protection against redemptions?​

While our automated system significantly reduces the likelihood of redemption by proactively adjusting rates, we cannot guarantee complete protection due to inherent market volatility and liquidity factors. Please review our comprehensive Terms of Service to understand these risks fully.

Which frontends can I use?​

Liquity does not run its own frontend. You can use any frontend that supports interest rate delegation for Liquity V2 protocols. You can find independent frontends here or just head to liquity.app.

How frequently are interest rates adjusted?​

Adjustments typically happen at most once per week under normal conditions. During high-risk periods, adjustments may occur more frequently as needed, within the limits enforced by the Liquity protocol.

Do rates differ based on collateral types?​

Yes. Interest rates are optimized individually for each collateral type to manage risk effectively. Each collateral type has its own optimal range for safe borrowing.

Can I stop using Summerstone at any time?​

Absolutely. You retain full control and can revoke interest rate delegation at any moment directly from your wallet.

Which Liquity V2 forks and stablecoins are supported?​

We support multiple popular Liquity V2 forks and stablecoins used actively by the community. You can find the full list of supported protocols in our Supported Protocols section.