> ## Documentation Index
> Fetch the complete documentation index at: https://docs-staging.centuari.finance/llms.txt
> Use this file to discover all available pages before exploring further.

# Asset Looping

> Recursive borrowing to amplify exposure on stablecoins, crypto, and RWA with fixed-rate borrowing

<Warning>
  **Coming Soon** - Asset Looping is an upcoming feature. Further details will be available when it launches.
</Warning>

## 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.

## How It Works

<Steps>
  <Step title="Deposit Collateral">
    Deposit your asset (stablecoin, crypto, or RWA) as collateral on Centuari
  </Step>

  <Step title="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.
  </Step>

  <Step title="Redeposit">
    Convert the borrowed amount back to your target asset and deposit it as additional collateral
  </Step>

  <Step title="Repeat">
    Borrow again against your increased collateral. Each loop amplifies your exposure, up to 2-4x depending on the asset's LTV ratio.
  </Step>
</Steps>

```
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)
```

## Supported Assets

<CardGroup cols={3}>
  <Card title="Stablecoins" icon="coins">
    Loop USDC, USDT, or DAI to amplify yield on lending positions
  </Card>

  <Card title="Crypto" icon="bitcoin">
    Loop ETH, wBTC, or other crypto for leveraged long exposure
  </Card>

  <Card title="RWA" icon="building-columns">
    Loop tokenized gold, stocks, or bonds for leveraged real-world asset exposure
  </Card>
</CardGroup>

## 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 Looping    | Fixed-Rate Looping (Centuari)   |
| --------------------------- | ------------------------ | ------------------------------- |
| Borrow cost                 | Fluctuates with market   | Locked at execution             |
| Rate spike risk             | High - can erode profits | None - rate is fixed            |
| Financial planning          | Unpredictable            | Predictable from day one        |
| Liquidation risk from rates | Yes                      | No (only from collateral price) |

## Use Cases

<AccordionGroup>
  <Accordion title="Yield Amplification (Stablecoins)" icon="chart-line">
    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.
  </Accordion>

  <Accordion title="Leveraged Long (Crypto)" icon="arrow-trend-up">
    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).
  </Accordion>

  <Accordion title="Leveraged RWA Exposure" icon="building-columns">
    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.
  </Accordion>
</AccordionGroup>

## Risks

<Warning>
  Asset Looping amplifies both gains and losses. Leveraged positions carry higher liquidation risk than standard lending or borrowing.
</Warning>

| Risk                 | Description                                                      | Mitigation                                                              |
| -------------------- | ---------------------------------------------------------------- | ----------------------------------------------------------------------- |
| Liquidation          | Collateral value drops below required threshold across all loops | Monitor health factor, use conservative leverage                        |
| Compounding interest | Borrow costs accumulate across each loop                         | Fixed rates make costs predictable, calculate total cost before looping |
| Market volatility    | Sharp price drops can trigger cascading liquidations             | Use lower leverage ratios, diversify collateral types                   |
| Smart contract risk  | Protocol or integration vulnerabilities                          | Audited contracts, insurance coverage                                   |

<Info>
  Start with conservative leverage (1.5-2x) until you understand how looping affects your health factor. Higher leverage amplifies risk significantly.
</Info>