Leverage Staking - Loop Stake
How does Loop Stake work ?
Leveraged staking through Loop Stake performs recursive borrow/lend of DOT/KSM and liquid staking token (vDOT/vKSM) to amplify yields from the user’s initial deposit. Detailed explanation here.
Users can deposit LSTs like vDOT/vKSM and borrow DOT/KSM to multiply their returns.

Here’s an example of how leverage staking works:
- Deposit an LST as collateral through Loop Stake
- The program uses the deposited LST to borrow DOT/KSM against the LST up to the user’s intended leverage ratio on Loop Stake
- This effectively gives users a larger notional position size of the LST, which multiplies the base yield for users.
If staking yields exceed the borrow costs, there is a premium from this Loop Stake.
Where does the yields come from ?
Can LoopStake support other liquid staking tokens in the future ?
How does unstaking work ?
What are the risks of leverage staking ?
Has Loop Stake been audited ?
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