How it works
How Looping Works
1. Supply Collateral Start by depositing your chosen asset into a Manual Loop Market. Most markets are typically made up of highly correlated asset pairs (e.g., stXTZ/XTZ, USDC/USDT, USDC/mTBILL) as strategies, which helps minimize price divergence risk while enabling higher borrowing power. Your deposit acts as collateral in the lending market and determines your initial borrowing capacity.
2. Borrow & Swap Against your supplied collateral, the protocol borrows the paired asset and swaps it back into more of your collateral token. For correlated pairs, this process has minimal price impact and reduces exposure to volatility, while still enabling leverage.
3. Repeat & Amplify The borrow-and-swap cycle repeats automatically in a single atomic transaction until your target leverage is reached. You can:
Increase position size by adding more collateral and raising the target leverage slider.
Reduce exposure by lowering the target leverage slider, which partially un-loops your position.
4. Close Position At any time, you can select CLOSE POSITION to unwind all leverage in one transaction. This unloops the position, repays the borrowed amount, withdraws your collateral, and sends the remaining balance back to your wallet.
Understanding Your Position
Your POSITION DETAILS tab gives real-time insights into your looped position:
Total Supplied / Total Borrowed → The assets you’ve deposited and borrowed, with live USD values.
Supply APY / Borrow APY → Earnings from your collateral and costs from your debt.
Health Factor → The safety margin of your position. Keep above 1.0 to avoid liquidation.
Liquidation Price / Current Price → Asset price point at which your position is liquidated, and your current market price.
Liquidation Buffer → How far the current price is from liquidation.
Loan-to-Value Ratio → Current borrowing relative to maximum allowed.
Leverage Metrics → Current leverage, maximum possible leverage, and utilization rate of your borrowing capacity.
Tracking Performance
The Performance tab breaks down your profitability:
Portfolio Net APY → Weighted average APY across all positions in your portfolio.
Position APY Breakdown → Supply earnings (positive) minus borrow costs (negative) to calculate your real yield.
Net Position Value → Supplied assets minus borrowed assets, showing your effective equity in the position.
Risk Note: Looping is a high-risk strategy — especially with high leverage — as both gains and losses are magnified. Monitor your Health Factor, Liquidation Buffer, and market conditions regularly to avoid liquidation events.
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