Loop
Leverage your deposit to gain increased exposure
Last updated
Leverage your deposit to gain increased exposure
Last updated
The Loop strategy borrows against a collateral asset and redeposits that newly borrowed asset back to the protocol as additional collateral. Leveraging can be used to gain greater exposure to an asset.
When using the Loop strategy you select a collateral asset and then select the debt you want Loop against. Loop utilizes assets already in your position so you may need to supply your initial asset.
The Loop function combines multiple steps in one:
Borrows against collateral generating debt
Uses the new borrowed assets and resupplies it to the position
This can be looped to create increased leveraged
In the input you can enter the amount of ETH to be looped this maximum leverage is determined by the protocol and collateral factor of the asset. For ETH you can loop it about 4x on AAVE.
