Looping Strategies
Looping Markets allow users to maximize their rewards by longing yield-bearing tokens on leverage. These tokens offer either built-in APY or separate claimable rewards. Wasabi lets you amplify those.
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Looping Markets allow users to maximize their rewards by longing yield-bearing tokens on leverage. These tokens offer either built-in APY or separate claimable rewards. Wasabi lets you amplify those.
⚠️ Note: While looping amplifies potential rewards, it also increases risk. Looping positions are still leveraged positions and may result in liquidations during price drops.
Looping Markets are available for tokens that:
Accrue yield directly into token value (e.g., $JLP)
Provide claimable yield separately (e.g., $iBGT)
By longing these tokens, you gain:
Price upside from the token itself
Yield either built into the price or as a separate claimable reward
Leverage to boost both price exposure and yield generation
Choose a Looping Market: Visit the Trade page, filter by "Looping" in the market selector pop-up, then select a token like $iBGT or $JLP.
Select Token and Leverage: Set your trade parameters, such as the amount, leverage, and the currency you open your position in.
Place the Trade: Open the trade. You’ll now be holding a leveraged long position on a yield-generating asset.
Amplify Native Yield: Leverage lets you magnify both price movement and yield, especially on high-APY tokens.
Earn While Longing: Unlike traditional longs, you don’t just wait for the price to go up - you’re earning yield the whole time.
Earn in Sideways Markets: Looping lets you stay active even when prices stall. By longing yield-bearing tokens, you continue earning APY even if the token’s price stays flat, turning idle markets into active opportunities.
Liquidation Risk: Like any leveraged trade, if the market moves against your position, you could be liquidated.
APY May Vary: APYs are variable and may change after you open a position.
Protocol-Specific Rewards: Some tokens (like $iBGT) generate yield as separate, claimable rewards. These do not affect your collateral, liquidation price, or position health, but still accrue over time and can be claimed separately.
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