Looping allows you to increase your exposure to Shift Stocks by borrowing against your position and buying more of the same asset.
What Is Looping?
Looping is a strategy that leverages different DeFi features to increase your exposure to the assets or to borrow additional Stablecoins, without adding new capital. Simple example is you borrow against your TSLAs and use the borrowed funds to buy more Shift Stocks, expanding your position using the assets you already hold.
Looping your Borrowing
Borrow → buy more Shift Stocks → use as collateral → repeat
The difference is that in DeFi, everything is transparent, automated, and self-custodial, with smart contracts managing your collateral and risk.
Here’s How It Works:
Deposit: $1,000 worth of TSLAs as collateral
Borrow: $400 USDC (40% LTV)
Swap: Borrowed USDC → buy more TSLAs
Deposit again: New TSLAs added as collateral
Repeat: Borrow again (optional)
Each loop increases your exposure to the stock while remaining fully collateralized and governed by a transparent smart contract.
Understanding the Risks
While Looping amplifies your potential returns, it also significantly increasing your risk.
If the price of your collateral drops:
Your collateral-to-debt ratio weakens
You may approach liquidation thresholds
Smart contracts may liquidate part of your position
Looping can amplify your returns in a rising market, but it also increases your risk of liquidation if the asset price falls, this strategy should be used carefully.
