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Coming Soon - Asset Looping is an upcoming feature. Further details will be available when it launches.

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What is Asset Looping?

Asset Looping is a recursive borrowing strategy that lets you amplify your exposure to any supported asset. You deposit collateral, borrow against it, redeposit the borrowed amount, and repeat. Each loop increases your effective position, multiplying your yield or market exposure. Centuari supports looping with stablecoins, crypto, and RWA - all with fixed-rate borrowing.

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How It Works

1

Deposit Collateral

Deposit your asset (stablecoin, crypto, or RWA) as collateral on Centuari
2

Borrow Against It

Borrow up to the asset’s LTV ratio at a fixed rate. For example, deposit 10 ETH and borrow 7.5 ETH worth of USDC at 75% LTV.
3

Redeposit

Convert the borrowed amount back to your target asset and deposit it as additional collateral
4

Repeat

Borrow again against your increased collateral. Each loop amplifies your exposure, up to 2-4x depending on the asset’s LTV ratio.
Loop Example (ETH, 75% LTV):

Loop 1: Deposit 10 ETH    -> Borrow 7.5 ETH equivalent
Loop 2: Deposit 7.5 ETH   -> Borrow 5.625 ETH equivalent
Loop 3: Deposit 5.625 ETH -> Borrow 4.22 ETH equivalent
─────────────────────────────────────────────────
Total exposure: ~27.3 ETH from 10 ETH initial deposit (2.73x leverage)

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Supported Assets

Stablecoins

Loop USDC, USDT, or DAI to amplify yield on lending positions

Crypto

Loop ETH, wBTC, or other crypto for leveraged long exposure

RWA

Loop tokenized gold, stocks, or bonds for leveraged real-world asset exposure

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Why Fixed-Rate Looping?

Traditional looping on protocols like Aave or Compound uses variable borrow rates. If rates spike, your borrowing costs can exceed your returns and push you toward liquidation. Centuari locks in your borrow rate at each loop. Your cost is predictable from day one, no matter what happens to market rates.
Variable-Rate LoopingFixed-Rate Looping (Centuari)
Borrow costFluctuates with marketLocked at execution
Rate spike riskHigh - can erode profitsNone - rate is fixed
Financial planningUnpredictablePredictable from day one
Liquidation risk from ratesYesNo (only from collateral price)

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Use Cases

Deposit USDC and loop to amplify your lending yield. If the base lending rate is 8% and your borrow cost is 6%, each loop adds incremental yield on the spread.Example: 2x leverage on a 2% spread = ~4% additional yield on your initial deposit.
Deposit ETH and loop to gain leveraged long exposure. If ETH appreciates, your amplified position captures more upside.Example: 2.5x leverage means a 10% ETH price increase results in ~25% gain on your initial deposit (minus borrow costs).
Deposit tokenized gold (PAXG) and loop for leveraged precious metals exposure with a fixed borrow cost.Example: 2x leverage on tokenized gold amplifies returns from gold price appreciation while keeping borrowing costs locked.

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Risks

Asset Looping amplifies both gains and losses. Leveraged positions carry higher liquidation risk than standard lending or borrowing.
RiskDescriptionMitigation
LiquidationCollateral value drops below required threshold across all loopsMonitor health factor, use conservative leverage
Compounding interestBorrow costs accumulate across each loopFixed rates make costs predictable, calculate total cost before looping
Market volatilitySharp price drops can trigger cascading liquidationsUse lower leverage ratios, diversify collateral types
Smart contract riskProtocol or integration vulnerabilitiesAudited contracts, insurance coverage
Start with conservative leverage (1.5-2x) until you understand how looping affects your health factor. Higher leverage amplifies risk significantly.