Looping Strategy

Holding Pendle PT-wstkscUSD allows you to earn an 11.36% APY. But what if I told you there’s a way to earn 4x that yield?

Take a look at this Silo’s lending market. This market allows you to deposit PT-wstkscUSD as collateral and borrow frxUSD, with a borrow rate of 4.6%.

Now what if you deposit your PT-wstkscUSD, borrow frxUSD, swap it for more PT-wstkscUSD, and deposit again? This looping process increases your exposure to PT-wstkscUSD, effectively amplifying your yield. 🚀

For example, let's say you have $100 worth of PT-wstkscUSD. Now, let’s try looping 5 times:

1. Initial Deposit: You deposit $100 of PT-wstkscUSD as collateral.

2. First Loop: You borrow frxUSD against your collateral (the LTV here is 85%, you can borrow $85 frxUSD). Then, you swap this frxUSD for PT-wstkscUSD and deposit it back.

3. Second Loop: With the newly deposited PT-wstkscUSD, you can now borrow $72.25 frxUSD (85% of $85), swap it again for PT-wstkscUSD, and deposit it.

4. Third Loop: You borrow $61.41 frxUSD, swap, and deposit again.

5. Fourth Loop: You borrow $52.20 frxUSD, swap, and deposit.

6. Fifth Loop: You borrow $44.41 frxUSD, swap, and deposit.

Now, let's calculate how much you earn after one year.

• Total deposited PT-wstkscUSD

• Total borrowed frxUSD

• Earnings from PT-wstkscUSD (11.36% APY)

• Interest paid on borrowed frxUSD (4.6% APY):

• Final Profit Calculation:

This is nearly 3x higher than simply holding $100 worth of PT-wstkscUSD, which would have earned only $11.36.

You could loop even more to earn up to 4x yield, but that would require an insane number of transactions—around 30 loops, meaning a minimum of 60 transactions. Sounds crazy, right?

That’s the pain point we’re solving for you.

With DogBone, instead of manually looping dozens of times, we provide a one-click solution—saving you time and effort. Now, instead of clicking a million times, you can focus on finding the next big DeFi opportunity while DogBone does the heavy lifting for you! 🚀

How to deposit into looping strategies

Go to DogBone and simply prompt: "Show me all looping strategies."

From there, browse through the available strategies and choose the one that fits you best.

Getting Started in Just a Few Clicks:

1. Head to the Deposit tab.

2. Enter the amount you want to deposit.

3. Set your leverage—adjust it based on how much risk you're willing to take.

That’s it! 🎉 Congrats! Now you can earn massive yields without the hassle of manually clicking a billion times. Let DogBone handle the loops while you focus on finding your next DeFi opportunity! 🚀