# LoopDrops ### Overview LoopDrops is a feature of products, such as LHYPE and LcBTC, that automatically farms airdrops on behalf of holders. By leveraging each protocol's underlying DeFi activities, LHYPE and LcBTC holders benefit from multiple airdrops without having to actively manage positions themselves. ### How It Works Points from partner protocols accrue to the LHYPE or LcBTC contract address from underlying DeFi activities such as: 1. Staking via Liquid Staking Protocols 2. Looping via Lending Protocols 3. Swaps via DEXs **100% of airdrop allocations will be distributed pro-rata to holders with LOOP points.** **Note: This will include HYPE season 2 airdrop, if distributed to Looping Colletive protocols.** ### How will airdrops by distributed? Airdrops will be distributed directly back to LHYPE and LcBTC holders based on their accrued [LOOP points](https://app.loopingcollective.org/points). ### Benefits * **Passive Earning:** Receive airdrops without actively managing multiple positions * **Automated Claims:** No need to pay gas fees or monitor claim periods * **Enhanced APY:** Benefit from increased returns through strategic ecosystem participation * **Diversified Exposure:** Gain access to multiple protocol airdrops through a single position * **Gas Efficiency:** Save on transaction costs by pooling resources ### How to Participate Simply hold LHYPE or LcBTC tokens in your wallet. The amount of airdrops you receive will be proportional to your holdings and duration of holding. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://docs.loopingcollective.org/loop-utility/loopdrops.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.