Looping (In Evaluation)

A new deployment strategy: Looping—currently in an open risk assessment phase.

Looping strategies involve borrowing against collateral and reusing the borrowed funds to purchase more of the same collateral, repeating this cycle multiple times. The result is a leveraged position that amplifies both yield and risk.

For example, you could borrow USDC against 7% APY and buy PTs which yield 10% APY. You’d then borrow more USDC using the bought PTs as collateral, and repeat the loop. This way you capitalise on the interest rate spread with leverage.

For Noon, looping is attractive because it transforms modest base yields into scalable returns (15–30% APY), while still using liquid, trustworthy collateral types. However, it introduces liquidation risk and operational complexity, which must be carefully managed.

Read our full Looping Primer for a detailed walkthrough of how Looping works, the mechanics, examples, risks, and more:

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Primer – Looping.pdf

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