# Leveraged Strategies (Looping)

Looping is a structured way to amplify yield on stable, fundamentally backed assets. The mechanic is straightforward:

1. Deposit a yield-bearing asset (e.g., syrupUSDT earning \~3.6%) as collateral on a lending platform
2. Borrow against it in a correlated stable asset (e.g., USDT) at a lower rate (e.g., \~3.1%)
3. Use the borrowed funds to buy more of the yield-bearing asset
4. Re-deposit and repeat — building up a leveraged position

The result: you capture the spread between collateral yield and borrow cost, multiplied by leverage. At \~10x leverage on a \~0.5% spread, this generates roughly \~8% additional yield on top of the base rate.

#### **Why it's safe in Yuzu's hands**

Yuzu only loops on assets backed by institutional-grade collateral (BTC, ETH, T-bills, blue-chip lending) with fundamental oracles. The position is only "liquidatable" if the strategy carries negative spread for a prolonged period — which is monitored daily and unwound long before any forced liquidation could occur.

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