> For the complete documentation index, see [llms.txt](https://dev.init.capital/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://dev.init.capital/guides/liquidity-hook/looping-hook.md).

# 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.


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