PT looping

A loop only makes sense where the fixed return beats that market’s borrow rate. Unlockable lists only those markets on the looping page, and the trade ticket disables the loop toggle everywhere else.

1. 1

   Deposit USDG

   The starting collateral for the loop.
2. 2

   Buy PT

   The deposit buys PT at its current discount.
3. 3

   Borrow and repeat

   The PT collateralises a USDG borrow, which buys more PT, repeating up to the leverage you chose.

The arithmetic#

The looped return is the fixed return, plus the spread between the fixed return and the borrow rate on every additional turn of leverage. Each pool sets its own borrow rate, roughly 2 to 3 percent.

loopedReturn = fixedReturn + (fixedReturn - borrowRate) * (leverage - 1)

// PFE, 17 Dec 2027, at 3x:
// 7.10% + (7.10% - 2.60%) * 2
// = 16.09%

Higher leverage multiplies the same spread further. The same arithmetic runs backwards if the borrow rate ever climbs above the fixed return you locked in — which is the subject of Looping risk.

Two ways in#

The looping page ranks every eligible market by looped APY and opens a configurator — leverage, deposit, projected value at maturity — from each row. Or you can loop directly from a market’s trade ticket: with Token value selected, the loop toggle adds leverage to the order you were already building.