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Yield Strategies

Loopify Finance implements three core yield optimization strategies: flash loan looping, automated yield optimization, and pre-deposit systems with points-based rewards.

Flash Loan Looping Strategy​

Overview​

Flash loan looping amplifies yield exposure through atomic leverage execution using Balancer/Aave flash loans, Euler V3 (EVC), and Pendle PT/YT minting.

Key Parameters​

  • Max Leverage: 5x
  • Max LTV: 80%
  • Flash Loan Source: Balancer (zero fees)
  • Protocols: Aave V3, Morpho Blue, Euler V3

How It Works​

  1. Flash Loan: Borrow additional capital instantly
  2. Loop Strategy: Deposit → Borrow → Repeat (up to 5x)
  3. Yield Amplification: Leverage multiplies exposure to underlying yields
  4. Single Transaction: Entire strategy executes atomically
// Core loop logic
uint256 flashLoanAmount = (amount * (leverage - 100)) / 100;

Example: $10,000 with 3x leverage borrows $20,000 flash loan for $30,000 total exposure.

Automated Yield Optimization​

Overview​

ERC4626-compliant vaults that automatically allocate funds across multiple yield sources to maximize returns while managing risk.

Withdrawal System​

  • Instant: For funds currently in vault
  • 1-12 Hours: For funds deployed in external strategies
// Withdrawal timelock logic
uint256 delay = assetsRequested <= vaultBalance ? 0 : 12 hours;

Key Features​

  • Auto-Rebalancing: Moves funds to highest-yield opportunities
  • Risk Management: Maintains diversification across protocols
  • Gas Efficiency: Batches operations to minimize costs

Pre-Deposit Strategy with Points​

Overview​

Early access system using share tokens similar to Euler's design, accumulating points for eventual token conversion at TGE.

Token Mechanics​

  • Share Tokens: Represent pre-deposit amounts
  • Points System: Accumulate over time based on deposit size and duration
  • TGE Conversion: Points convert to governance tokens at Token Generation Event
  • Benefits: Permanent fee discounts and priority access

Fee Structure​

  • Looping: 0.075% (price not 100% set)
  • Yield Optimizer: 10% of additional yield
  • Smart Wallet Rebalancing: 0.03%

These three strategies work together to provide comprehensive yield optimization from conservative auto-compounding to aggressive leveraged positions, all accessible through simple user interfaces.