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.
Last updated
English
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.
Last updated
⚠ Note: While looping amplifies potential rewards, it also increases risk. Looping positions are still leveraged positions and may result in liquidation 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 separate claimable rewards
Leverage to boost both price exposure and yield generation
Choose a Looping Market:
Visit the page and filter by "Looping" on the market selector popup, then select a token like $iBGT or $JLP.
Select Token and Leverage:
Set your trade parameters like amount, leverage, and which currency to open your position with.
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.