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.

⚠ Note: While looping amplifies potential rewards, it also increases risk. Looping positions are still leveraged positions and may result in liquidation during price drops.

What is Looping?

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

Opening a Looping Trade

1. Choose a Looping Market:

   Visit the Trade page and filter by "Looping" on the market selector popup, then select a token like $iBGT or $JLP.

2. Select Token and Leverage:

   Set your trade parameters like amount, leverage, and which currency to open your position with.

3. Place the Trade:

   Open the trade. You’ll now be holding a leveraged long position on a yield-generating asset.

Why Engage in Looping Strategies?

• 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.

Risks to Keep in Mind

• 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.