What is Looper?

Enhance capital efficiency to boost yields for LSD assets

Looper protocol is a decentralized protocol that aims to offer an easy-to-use solution for holders of LSD ETH (starting with stETH, with plans to support more LSD assets) to enhance their LSD yield exposures.

Each user can create a vault to deposit stETH and mint synthetic asset (LETH) on a 1:1 basis. LETH can be utilized to leverage up the user’s stETH exposure (aka Looping) or simply be deposited to LP pools to earn yields. The user can repay LETH to withdraw stETH from their vault as long as there are sufficient stETH deposits.

As 1 LETH is always backed by at least 1 stETH in vault deposits, it is hard-pegged in nature. LETH price may fluctuate slightly in secondary markets due to temporary imbalance in AMM pools, arbitrager can utilize arbitrage opportunities to buy cheap LETH and redeem stETH from the protocol, buying pressure from arbitrage trades will help to bring equilibrium to the AMM pools.