AutoLoop™

An automated looping strategy to maximize HYPE yield

AutoLoop functions by borrowing HYPE against stHYPE, then staking the additional HYPE earned back into the looping strategy (also known as recursive staking). This process can be looped between 3x - 15x depending on the staking APY and borrow rate.

AutoLoop automatically adjusts the loop multiplier used in the strategy to generate the maximum yield. Rebalancing happens once a day, to optimize the efficiency of the trade and deleverage if needed.

This ensures LHYPE holders can benefit from the most efficient looping multiplier for the best risk-adjusted yield.

Key Functionalities of AutoLoop include:

1. Real-Time Monitoring

   • Tracks staking APYs, borrowing rates, and LST prices throughout the day.

   • Prepares for the daily rebalance by collecting up-to-date data.

2. Unified Multipliers

   • Everyone in the vault is exposed to the same leverage setting.

   • Simplifies management and keeps user returns consistent.

3. Risk Controls

   • Daily deleveraging triggers if LTV exceeds safe thresholds.

   • Circuit breakers pause new loops during sudden market swings.

   • Gradual unwinding reduces the chance of forced liquidations.

   • Eliminate depeg risk by using the exchange ratio

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AutoLoop strategy overview - Updated 16 May 2025

How It Works

1. Data Collection

   • System fetches price feeds, APYs, and loan rates each day.

   • Compares current LTV to borrowing and staking spreads.

2. Decision Logic

   • Leverage Up: If staking APY outpaces borrowing costs, AutoLoop borrows more and stakes again.

   • Leverage Down: If borrowing rates rise or LST values drop, it repays loans or unstakes as necessary.

3. Daily Rebalancing

   • At a set time, AutoLoop updates the vault’s multiplier for all depositors.

   • Ensures uniform adjustments so everyone benefits from optimal settings.

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Usage Flow

1. Vault Deposit

   • You deposit tokens and AutoLoop is automatically enabled.

2. Ongoing Operation

   • AutoLoop rebalances daily with no extra effort on your part.

3. Visibility & Alerts

   • Instant notifications if the system detects abnormal volatility.

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Conclusion AutoLoop handles the heavy lifting of leveraged staking for you. It checks real-time data, rebalances daily, and keeps everyone on the same multiplier to maximize efficiency while protecting your capital. Enjoy optimized returns and peace of mind in any market conditions.