Table of contents

Loop Stake main characteristics

Main parameters are detailed here where you can find the Rate Curve of lending Markets.

• vTokens: vDOT & vKSM
• Max Borrow APY: 50%
• Borrow APY - Jump rate: 90%

<aside> ⚠️ Leverage staking risk warning

Please note that using leveraged staking may have the following potential risks:

• Manual redemption may require a long waiting cycle: depending on your current leverage position, when manually deleveraging by using “Redeem Mode”, the redemption of vToken may require waiting for several months.
• High borrowing rates may lead to sustained losses: when the liquidity of the Token lending market is insufficient, the increase in borrowing rates may exceed the staking returns of your principal. In this case, your leveraged position will continue to generate losses.
• Potential slippage loss when using “Swap Mode” for deleveraging: when you use “Swap Mode” to lower leverage, the system will automatically complete the exchange in the Bifrost Stable Pool. Therefore, depending on the current liquidity situation, Swap may cause unpredictable slippage losses.

Please note, by using this function, you are acknowledging and accepting the aforementioned risks.

</aside>

Youtube tutorial:

How does Loop Stake work ?

How does Loop Stake work ?

Loop Stake can be accessed through the main DOT vStaking & KSM vStaking pages. Click on the "Loop Stake" tab.

Loop Stake feature page

The screen can be divided in 4 main parts:

• The lending market: showing the total supply of DOT in the lending market versus the total borrow supply.

Market history

• The collateral position: the collateralized position is the position which you are allowed to borrow against.

Collateralized position

• The Loop Stake leveraging feature: you can leverage/deleverage your position from here