# 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. --- # 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/what-is-liquid-looping.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.