Looping

Looping

Looping lets you increase your token position by borrowing against the floor value of tokens you already own.

It’s a way to get more exposure to a token you believe in, using your existing position as collateral.

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Think of looping like “stacking” your position — buy → borrow → buy again — using the floor-backed value as your baseline.


What is looping?

Looping is a repeatable cycle:

  1. Buy tokens

  2. Stake tokens into a contract as collateral (based on their Floor Price)

  3. Borrow USDC

  4. Buy more tokens

  5. Repeat (optional)

Looping increases your exposure without needing to add fresh funds each time.


How it works (step-by-step)

1) Buy tokens

Acquire tokens on Starbase.

2) Stake tokens as collateral

To borrow USDC, you stake your tokens into a contract.

  • Collateral value is based on Floor Price, not Market Price

  • Borrow limits, fees, and other parameters are set by the protocol (TBD details)

3) Borrow USDC

You take on debt (USDC) secured by your staked tokens.

4) Buy more tokens

Use the borrowed USDC to buy more tokens.

5) Repeat (optional)

Repeat the loop to further increase exposure.

The above flow is wrapped into one action when you move the "Loop" slider on the "Buy" tab to a value greater than 0.


Why looping is different on Starbase

Collateral baseline doesn’t shrink

Traditional leverage can trigger liquidation when collateral falls.

Starbase looping anchors collateral to the Floor Price, which cannot go down by design.

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You can unloop anytime

You can close a looped position by repaying what you borrowed and withdrawing your tokens.


Unlooping (closing your position)

When you want to exit:

  1. Repay your borrowed USDC (plus any fees/interest, if applicable)

  2. Withdraw your underlying tokens

  3. Then choose to:

    • Hold

    • Sell at Market Price

    • Redeem at Floor Price


Important risks and disclosures

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Plain-English explanation of the risk

Looping increases your exposure. If the token’s Market Price rises, gains can be amplified. If the Market Price falls or stays flat, losses can be amplified too.

If you don’t fully understand how borrowing, staking, and repayment work, do not loop.


Who is looping for?

  • Traders with high conviction who want amplified exposure

  • Users who want greater exposure to the token market with a floor-anchored collateral baseline

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