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Melt butter in a heavy pot over medium heat. Add onions: cook and stir until softened, about 5 minutes. Add chicken broth and potatoes; bring to a boil. Reduce heat to medium-low, cover pot and simmer, about 5 minutes. Add carrots and simmer, about 10 minutes. Add summer squash and simmer until all vegetables are tender, about 15 minutes.
Combine soup, basil, salt, and pepper into a blender or food processor, no more than half full. Cover and hold lid down; pulse a few times before leaving on to blend. Purée in batches until desired consistency is reached.