> For the complete documentation index, see [llms.txt](https://docs.loopingcollective.org/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.loopingcollective.org/what-is-liquid-looping.md).

# 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.