What is Liquid Looping?

Liquid Looping is a DeFi primitive that supercharges staking by “looping” your assets through liquid staking tokens (LSTs) and lending protocols. Instead of a single stake, your deposit is recursively staked—stake, borrow, re-stake, repeat—achieving significantly higher yields with marginally higher risk than direct staking.

How it works

  • Deposit your native token (HYPE, USDHL, etc.).

  • Mint an LLT to track your position.

  • Loop automatically: stake → borrow → re-stake → repeat.

  • Accrue value: each loop automatically compounds your exposure.

Why it matters

  • Higher yield – outperforms basic (liquid) staking

  • Farming multiplier – earn up to 5× points in underlying DeFi protocols

  • Full liquidity – swap LLTs anytime

  • Extra utility – use LLTs as collateral for leverage or other DeFi strategies

  • Hands-off compounding – set it and forget it

In short, Liquid Looping turns plain staking into a self-driving, yield-amplifying engine, while keeping your funds liquid through LLTs.

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