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User Guide

Loopify Finance is a sophisticated yield optimization platform built on Converge Network, specializing in USDe and sUSDe strategies. This guide will walk you through every aspect of using the platform effectively.

Getting Started with Loopify Finance​

Step 1: Connect Your Wallet​

  1. Navigate to Loopify Finance: Visit the Loopify Finance application
  2. Connect MetaMask: Click "Connect Wallet" and select MetaMask
  3. Network Setup: Ensure you're connected to Converge Network
  4. Wallet Approval: Approve the connection request in MetaMask

Step 2: Pre-Deposit Campaign (Limited Time)​

Take advantage of our pre-deposit campaign for enhanced rewards:

  • Deposit USDe: Minimum $100 deposit required
  • Hold to accumulate Loopify points - also receive the maximum 30x Ethena Rewards multiplier on your deposit. Plus use lUSDe in supported integrations (soon) to amplify your points.
  • Loopify Points are distributed linearly, scaling with your deposit size and duration—the more you deposit, the more you earn.
  • Early Access: Get priority access to new features

Step 3: Choose Your Strategy​

Conservative Vault:

  • Target APY: 5-10%
  • Risk Level: Low
  • Strategy: Diversified USDe lending across multiple protocols
  • Liquidity: High (withdraw anytime if available)
  • Minimum: $10 USDe

Aggressive Vault:

  • Target APY: 20-35%
  • Risk Level: High
  • Strategy: 5x leveraged looping with PT/YT optimization
  • Liquidity: Medium (may have withdrawal delays)
  • Minimum: $100 USDe

Option B: Loop Positions (Advanced Users)​

Manual Looping:

  • Leverage Range: 1x to 5x
  • Custom Control: Set your own risk parameters
  • Active Management: Requires monitoring and adjustment
  • Higher Returns: Potential for superior yields with proper management

Example Loop Strategy:

[Deposit $500 USDe] → [3x Leverage] → [1,500 YT-USDe Exposure]

Step 4: Advanced Yield Optimization​

Monitor and optimize your positions for maximum returns:

  • Real-time Tracking: Health factor and yield performance monitoring
  • Automated Rebalancing: Smart position adjustments based on market conditions
  • Risk Management: Liquidation protection and alert systems
  • Yield Compounding: Automatic reinvestment of earned yields
  • Multi-Position Management: Handle multiple strategies simultaneously

Optimization Process:

  1. Monitor position health and performance metrics
  2. Set risk tolerance and rebalancing preferences
  3. Enable automated yield compounding
  4. Track performance across all positions
  5. Adjust strategies based on market conditions

Advanced Features​

Portfolio Management​

Dashboard Overview:

  • Real-time position values
  • Current APY across all strategies
  • Health factor monitoring
  • Pending rewards and Loopify points

Risk Management Tools:

  • Automated liquidation protection
  • Health factor alerts (email/SMS)
  • Position size recommendations
  • Diversification suggestions

Yield Optimization Engine​

Loopify Finance automatically optimizes yields through:

  1. Rate Discovery: Finds best lending rates across protocols
  2. Rebalancing: Adjusts positions based on market conditions
  3. Compounding: Automatically reinvests earnings
  4. Fee Minimization: Batches transactions to reduce gas costs

Withdrawing Funds​

Vault Withdrawals​

Standard Process:

  1. Navigate to your vault position
  2. Click "Withdraw" and enter amount
  3. Check estimated processing time
  4. Confirm transaction in MetaMask
  5. Funds arrive in your wallet within 5-10 minutes

Important Notes:

  • Withdrawals depend on vault liquidity
  • High utilization may cause delays
  • No penalties for standard withdrawals
  • Instant withdrawals available for most conservative positions

Loop Position Closure​

Unwinding Process:

  1. Go to "My Positions"
  2. Select the loop position to close
  3. Review unwinding costs and timeline
  4. Confirm closure transaction
  5. Receive net proceeds after debt repayment

Closure Fees:

  • Gas costs: ~$0.05 on Converge Network
  • Slippage: Maximum 0.5% on asset swaps
  • No early closure penalties for loop positions

Loan Repayment​

Standard Repayment (at maturity):

  • Pay principal + accrued interest
  • Automatic collateral release
  • Health factor returns to infinity

Early Closure (before maturity):

  • Critical: Must pay full interest for entire term
  • Example: 45-day loan closed on day 20 = pay full 45-day interest
  • Immediate collateral release upon payment
  • No additional penalties beyond full interest

Early Closure Example:

Loan: $1,000 USDe for 90 days at 5% APY
Full Interest: $1,000 × 5% × (90/365) = $12.33
Early Closure (Day 30): Pay $1,000 + $12.33 = $1,012.33

Risk Management Best Practices​

Position Sizing​

  • Conservative Users: Limit single positions to 25% of portfolio
  • Moderate Users: Maximum 50% in high-risk strategies
  • Aggressive Users: Never exceed 75% in leveraged positions

Health Factor Management​

Monitor these critical thresholds:

  • Green Zone: Health Factor > 2.0 (very safe)
  • Yellow Zone: Health Factor 1.5-2.0 (monitor closely)
  • Orange Zone: Health Factor 1.3-1.5 (reduce leverage)
  • Red Zone: Health Factor < 1.3 (urgent action required)

Diversification Strategies​

  • Spread deposits across multiple vaults
  • Mix conservative and aggressive strategies
  • Adjust leverage levels based on market volatility
  • Consider RWA collateral for additional diversification

Troubleshooting Common Issues​

Transaction Failures​

Gas Issues:

  • Increase gas limit by 20%
  • Check Converge Network status
  • Retry during off-peak hours

Slippage Problems:

  • Increase slippage tolerance to 1%
  • Split large transactions into smaller ones
  • Check market conditions before trading

Withdrawal Delays​

Vault Liquidity Issues:

  • Check vault utilization rate
  • Consider partial withdrawals
  • Wait for loan repayments to increase liquidity

Network Congestion:

  • Monitor Converge Network status
  • Increase gas price for faster processing
  • Use MetaMask's "Speed Up" feature if available

Health Factor Warnings​

Immediate Actions:

  1. Add more collateral to improve health factor
  2. Repay portion of debt to reduce risk
  3. Close positions if health factor approaches 1.2
  4. Contact support if automated systems malfunction

Getting Support​

Documentation Resources​

  • User Guide: This comprehensive guide
  • Technical Docs: Smart contract specifications
  • FAQ: Common questions and answers
  • Looping Examples: Real-world strategy demonstrations

Community Support​

  • Discord: Real-time community help
  • Telegram: Daily updates and announcements
  • Twitter: Latest news and platform updates
  • GitHub: Technical discussions and bug reports

Direct Support​

  • Support Tickets: For account-specific issues
  • Email Support: help@loopifyfinance.com
  • Emergency Contact: For urgent liquidation issues

Security Best Practices​

Wallet Security​

  • Never share private keys or seed phrases
  • Use hardware wallets for large positions
  • Enable two-factor authentication where possible
  • Regularly update MetaMask and other wallet software

Platform Interaction​

  • Always verify URLs before connecting wallets
  • Check transaction details before signing
  • Use official links from Loopify Finance communications
  • Be wary of phishing attempts and fake websites

Risk Awareness​

  • Understand that all DeFi investments carry risks
  • Never invest more than you can afford to lose
  • Keep up with platform updates and changes
  • Monitor positions regularly, especially leveraged ones

This user guide covers the essential aspects of using Loopify Finance. For advanced strategies and technical details, please refer to our comprehensive documentation sections. Always conduct your own research and consider your risk tolerance before making investment decisions.