↪ How to Loop on HyperLend
Earn up to 2x your staking yield with stHYPE or kHYPE — automatically.
Looping is a yield-maximizing strategy that uses your liquid staking tokens (stHYPE or kHYPE) as collateral, borrows wHYPE, and re-deposits it — compounding your exposure and returns automatically.
• Steps to Loop
Navigate to the “Loop” section of the HyperLend platform.
Select your Yield Asset Choose stHYPE or kHYPE — both are liquid staking tokens for HYPE and will earn interest.
Select your Debt Asset Set wHYPE as the debt asset. This is what you'll borrow to loop back into your yield position.
Adjust Your Leverage Use the slider to set your desired leverage. Higher leverage means higher potential returns — and higher risk.
Enter the Amount You Want to Loop Choose how much of your stHYPE or kHYPE to deposit into the strategy.
Click “Open Position” HyperLend will automatically handle the looping process via Liquid Launch (aggregator).
Once your position is opened, it appears in the “Your Positions” section. From there, you can track your performance and make changes.
• Managing Your Position
Click “Modify” next to your active position.
You can Add more collateral or Remove some, adjusting your exposure dynamically without closing the loop.
⚠️ Risk Considerations
Looping with leverage can boost your returns — but it introduces serious risks you must manage:
Liquidation Risk: If the price of your collateral drops or your Health Factor falls too low, your position may be liquidated.
LST Depeg Risk: Since you're swapping and looping between HYPE and its liquid staking derivatives (stHYPE or kHYPE), any depeg from the underlying HYPE value can put your position at risk. If stHYPE or kHYPE trades below its expected redemption value, it can cause unexpected losses and accelerate liquidation risk.
Leverage Risk: Leveraging amplifies both your gains and your downside. A 3x position falls apart 3x faster in volatile markets.
Swap Impact: The protocol performs swaps automatically to rebalance your loop. In thin markets or large positions, this can cause price impact and affect your final execution price.
Borrow Rate Volatility: Borrow rates on wHYPE are dynamic and can spike with utilization. That can erode your net yield and flip your position negative.
Always monitor your Health Factor and price relationships between HYPE and its LSTs. Stay well within your risk tolerance and adjust your position proactively when needed.
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