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.

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Here’s an example of how leverage staking works:

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 ?


bbBNC Community FAQ - A Deep Dive into Bifrost Tokenomics 2.0

bbBNC Community FAQ