# Looping Hook A liquidity hook to create **a leveraged position** with 1 collateral token and 1 borrow token **in a single transaction**. For example, a user can open an mETH-ETH looping position by collateralizing $5 worth of inmETH and borrowing $4 worth of WETH to earn a leveraged yield on mETH staking rewards. The function utilizes "Flash Borrow", swap the borrowed token to collateral token, and collateralize into a position. Users can adjust their positions (increase/decrease leverage, increase/decrease position size, etc.). The looping hook must swap a position's borrow token into a collateral token, and the hook utilizes a [swapHelper](/contract-references/loopinghook.md#swaphelper) to perform the swap action. Currently, there are 3 looping hook contracts, each with a different swap helper, that perform swaps on Merchant Moe, Agni Finance, and FusionX Finance. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://dev.init.capital/guides/liquidity-hook/looping-hook.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.