1-Click Looping
Overview of MYSO's atomic 1-Click Looping mechanism
1-Click Looping is anatomic single-transaction mechanism to maximally loop and lever up on any available token as efficiently as as possible with no liquidation risk, all with just one click.
To understand how the mechanism works, let's take a look at a scenario: Say you are pledging 200 RPL and want to access want to access leveraged exposure to your RPL against rETH. Select the 1-Click Looping field and choose an appropriate loan quote that matches your interest and risk preferences. The amount of leverage you can access depends primarily on the Loan-to-Value (LTV) ratio for the loan quote you’re interested in taking on — for example, with an LTV of 90%, you can theoretically access up to 10x leverage on your underlying (less slippage, DEX fees, etc.).
Let’s say our loan quote allows us to access approximately 4x leverage on our RPL exposure. To execute the full looping process with 1 click, the MYSO v2 looping smart contract:
Executes a flashborrow of ~6.79 rETH (loan token) from the appropriate lender vault from which the quote is sent out from
Swaps this flashborrowed rETH on a DEX (e.g. Balancer, Uniswap v3, etc.) to ~807 RPL
Pulls the pledged 200 RPL collateral from the borrower to the looping contract
The looping contract now has the ~807 RPL that has been acquired from the DEX, as well as the pledged 200 RPL collateral from the borrower. It then sends these two amounts back to the lender vault and the vault now has ~1007 RPL for the borrower to reclaim if they were to repay the borrowed ~6.79 rETH (+ interest) prior to expiry.
This whole process is done atomically and in one click, allowing for minimal overhead in the looping process for the end-user. As described above, the looping smart contract interacts with the lender vault, a DEX, and the borrower on the backend to produce the maximum leveraged position for the borrower.
It's also more efficient in terms of fees — if a borrower would want to loop manually, they would have to incur additional gas fees and DEX/slippage fees on every single transaction. Having to loop manually is also quite tedious and requires significant operational overhead to pledge collateral, swap, re-pledge, etc. —for example, it would take over 19 iterations of this process to achieve ~5x leverage on a given token at 80% LTV!
To view 1-Click Looping in action before trying it out yourself, watch this video where we used 1-Click Looping to lever up on our exposure to wMNT on the Mantle Network:
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