Loop Strategy Vaults

Loop Strategy Vaults are smart vaults that use a looping (leveraged lending) strategy to help you earn more from your deposits. Instead of simply supplying tokens to a lending market, the vault borrows against your collateral and re-supplies it multiple times to increase exposure and amplify returns — all in a safe, automated way.

When you deposit, you receive vault shares representing your proportional ownership of the vault’s total assets. The vault handles the entire process, from executing the looping transactions to maintaining healthy collateral ratios so you can focus on the bigger picture.

Under the hood, the looping and un-looping mechanisms are powered using a modular architecture built on:

• ERC-4626 vault standard for consistent deposit/withdraw interfaces

• Flash Loans for atomic looping/unlooping execution

• Universal DEX module for onchain swaps during the looping process

This design allows the vault to:

• Loop (increase leverage) automatically when deploying deposits

• Un-loop (deleverage) efficiently during withdrawals or risk adjustments

• Maintain safety parameters and avoid liquidation risks through automated management