# ↪ How to HyperLoop

**Earn up to 2x your staking yield with stHYPE or kHYPE — automatically.**

Looping is a yield-maximizing strategy compounding your exposure and returns automatically.

**HyperLoop** lets you open a leveraged loop position using any two tokens: one is supplied, one is borrowed.

### **• How it works** <a href="#how-it-works" id="how-it-works"></a>

* **Yield asset**: The token you supply to earn interest or rewards.
* **Debt asset**: The token you borrow in the looped position, which accrues interest.

When you deposit, HyperLoop uses a flashloan to instantly build your leveraged position in a single transaction. It works like this:

1. A flashloan of the **debt asset** is taken.
2. That debt token is **swapped** into the **yield asset**.
3. The resulting **yield asset** is supplied as collateral.
4. The same **debt asset** is then borrowed against the new collateral.
5. The borrowed amount, along with your initial supplied funds, is used to **repay the flashloan** (since the collateral's LTV is less than 100%).

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Note: Each position is held in an isolated contract. Keep in mind that the HyperLoop position will be shown seperately on "Loop" section on your dashboard.
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The entire process is completed atomically using flashloans- no manual steps or repeated cycles required- and incurs a **0.04% flashloan** **fee** on the amount used during the transaction.

### **• Steps to Loop** <a href="#steps-to-loop" id="steps-to-loop"></a>

1. **Navigate to the “Loop” section of the HyperLend platform.**
2. **Select your Yield Asset-** Choose stHYPE or kHYPE — both are liquid staking tokens for HYPE and will earn interest.
3. **Select your Debt Asset-** Set wHYPE as the debt asset. This is what you'll borrow to loop back into your yield position.
4. **Adjust Your Leverage-** Use the slider to set your desired leverage. Higher leverage means higher potential returns — and higher risk.
5. **Enter the Amount You Want to Loop-** Choose how much of your stHYPE or kHYPE to deposit into the strategy.
6. **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** <a href="#managing-your-position" id="managing-your-position"></a>

* **Click “Modify”** next to your active position.
* You can **Add** more collateral or **Remove** some, adjusting your exposure dynamically without closing the loop.

**Big/Small Blocks:**

HyperLend utilizes Hyperliquid’s unique dual-block system, allowing users to choose between near-instant execution and high-capacity, lower-cost processing.

By default, HyperLoop transactions are routed through Small Blocks. To switch:

1. Navigate to HyperLoop section and scroll down.
2. Click on "Enable Big Blocks"> popup pops up> click on "Switch to Big Blocks" and confirm in your wallet
3. Your preferred block type has been successfully updated.

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* Small blocks have a block time of 2 seconds and a gas limit of 2M gas. The expected gas price is 0.96 gwei.
* Big blocks have a block time of 60 seconds and a gas limit of 30M gas. The expected gas price is 0.1 gwei.

Switching will require 2 signatures (approving and removing an agent address).

#### **↝⚠️ Risk Considerations** <a href="#risk-considerations" id="risk-considerations"></a>

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Looping with leverage can boost your returns- but it introduces serious risks you must manage.
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* **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.