Looping Strategies

What is Looping Yield Layer?

Looping allows users to amplify their yield exposure by automatically borrowing against their RWA assets to buy more of the same asset, creating leveraged positions that can multiply returns.

How You Make Money from Looping

The Profit Mechanism With quality RWAs earning 20-30% APY and borrowing costs of 5-8%, looping amplifies your exposure to capture the yield spread at scale.

Example with 3x Leverage:

• Initial deposit: $10,000 in RWA tokens earning 25% APY

• Total exposure: $30,000 (3x leveraged position)

• Gross earnings: $30,000 × 25% = $7,500/year

• Borrowing cost: ~$20,000 × 6% = $1,200/year

• Net profit: $6,300/year vs $2,500/year without leverage, 2.5x amplified profits.

Risk Considerations

• Liquidation risk: If asset price drops significantly, position may be liquidated

• Interest rate risk: Borrowing costs may increase, reducing net returns

• Market risk: Amplified exposure means amplified downside in adverse conditions

Cian's yield layers will actively monitors and auto-deleverage strategies to mitigate these risks through dynamic position management.

How Looping Works

Step 1: Position Setup

You deposit RWA assets, and the system creates an isolated wallet instance for your position. Your assets are safely segregated with transparent tracking

Step 2: Zero-Slippage Leverage Creation

System uses your assets as collateral to borrow SLB, then converts to USDC through OTC mechanism. All trades are facilitated by Staple Exchange and funded by the Standing Lending Facility (SLF), which provides the stablecoin liquidity supply at oracle prices.

Step 3: Reinvestment Loop

Stablecoins is used to buy or stake to receive more of your target RWA asset, increasing your total exposure.

Step 4: Ongoing Management

System monitors position health and allows flexible management. You can reduce leverage, claim rewards, or exit positions as needed.

Step 5: One-Click Exit Management

While users can still repay debt with avaiable debt assets and withdraw collateral normally, Bondify also offers delegated unstaking where you select your desired exit percentage (partial or 100%). The Looper Yield Layer handles the unstaking process, uses proceeds to repay outstanding debt, and distributes remaining profits plus accumulated points to you. You can avoid the typical looping exit complexity: no need to wait through multiple unstaking periods and burden extra unstaking costs. Instead, delegate the unstaking job to save time and reduce the operational and economic burden of manual loop-by-loop exits.