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 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.
Last updated