Get ready to take your journey with the iLoop platform to the next level as we successfully complete our Testnet phase and launch the Mainnet! After months of hard work and community feedback, we've achieved remarkable milestones during the Testnet phase: over $14M in TVL, more than 12,000 wallets connected, and 11 LST assets listed on the platform.

Before concluding the Testnet, we launched the 'Check Your SOL Wallet' program to show appreciation to users who contributed to the Liquid Staking & Restaking sector in the Solana ecosystem. The results we gathered were truly astounding...

Reaching these impressive milestones during such a pivotal moment wouldn’t have been possible without your support. We are deeply grateful, as your encouragement is our greatest motivation to continue building iLoop and delivering value to Solana users.

1/ Abstract

Currently, Solana ranks second in Staking Market Cap, showcasing its immense appeal and potential to both communities and investors. This second position isn't surprising given Solana's proven capabilities in the blockchain space, attractive Reward Rates, and network security.

According to data from @21co__, currently approximately 6.78% of SOL (~$3.82B) is staked through liquid staking providers, significantly less than Ethereum's 40% market share. However, this figure remains largely untapped with significant potential for growth in the future. Ethereum, with its longevity and popularity, has a well-developed staking ecosystem, readily available for LST holders.

iLoop Protocol is a decentralized lending platform on the Solana blockchain, designed to offer users a secure and reliable means of accessing leverage and optimizing capital efficiency. By prioritizing robust risk management strategies, iLoop stands out as a safe and reliable choice for users navigating the complexities of the DeFi ecosystem.

iLoop Protocol aims to address the critical need for secure and efficient lending and borrowing solutions. Its suite of permissionless smart contracts enables seamless interactions and transactions, providing users with the tools they need to leverage their assets effectively. The protocol's commitment to real-time risk management ensures that users can confidently engage with the platform, knowing their investments are safeguarded against potential risks.

Initially, the protocol will support three assets: mSOL and jupSOL. Additional LSTs will be proposed to the community for feedback and reviewed by the iLoop team.

2/ How Does It Work?

iLoop offers two main features: Lend and Loop.

Lend

Lenders contribute their LST and other SOL-backed assets, such as jSOL, to an isolated reserve pool. In return, they receive interest payments based on the borrow rates in the market, which are driven by the supply and demand dynamics of the isolated reserve pool. This is in addition to maintaining their staking yield.

Loop

In the simplest terms, Looping involves repeated borrowing and lending actions to achieve a desired leveraged position, with the ultimate goal of earning additional rewards.

For example, a user might:

• Deposit SOL on Solend to borrow USDC,

• Swap the borrowed USDC for SOL,

• Deposit the newly acquired SOL back into Solend, and

• Repeat this process until reaching the desired position.

Example: How Looping Works

In money markets, borrowing typically requires over-collateralization, meaning you can only borrow a smaller value than your collateral. For instance, if you deposit 100 SOL (~$1000) on Solend with an 80% LTV, you can borrow up to 800 USDC. The process can then be repeated until achieving the desired leverage.

Loop 1:

• Deposit 100 SOL

• Borrow 800 USDC

• Swap 800 USDC for 80 SOL

Loop 2:

• Deposit 80 SOL

• Borrow 640 USDC

• Swap 640 USDC for 64 SOL

...

Loop 15:

• Deposit ~4.39 SOL

• Borrow 35.12 USDC

• Swap 35.12 USDC for ~3.51 SOL

After 15 loops, the initial position of 100 SOL increases to approximately 485.89 SOL.

Why Automation Matters

Manually executing these actions can be time-consuming and complex. That's why iLoop has developed an automated strategy to simplify and optimize the process for users.

Looping is a single-click vault product that enables you to leverage your exposure to yield-bearing assets. In iLoop Finance, borrowers can use their LSTs as collateral to increase their exposure to yield and points from the underlying assets.

By using staking-specific underwriting to eliminate price volatility, the risks of compounding rewards are reduced, making it safer and cheaper for borrowers to enhance their collateral exposure.

3/ How To Join Mainnet Beta

During the Testnet phase, we continuously refined display errors and logic to deliver the best possible user experience.

Now, the numbers speak for themselves! Tens of thousands of users engaged with iLoop's test network, and over 20,000 participants joined our Check Your SOL Wallet program.

There’s no better time than now to officially launch the Mainnet Beta. Joining iLoop is incredibly simple:

• Visit here!

• Connect one of the supported wallets.

• Start Lending or Looping!

4/ Why Did iLoop Launch on Solana?

We choose to build on Solana because we see it as the hub for financial transactions in general, and specifically for LST assets. Solana's perfect design makes it an ideal platform for widespread application, boasting high scalability and low transaction costs, suitable for billions of users.

Additionally, Solana's developer community and ecosystem are exceptionally large and high-quality, unlike any other ecosystem. Developers have pioneered groundbreaking, highly useful products, integrating blockchain into everyday life. This massive community exemplifies Solana's revolutionary development, transforming it from a technological platform into a community aiming to revolutionize and enhance how people interact with blockchain technology in daily life.

Solana is assembling the pieces of a complete ecosystem and continues to add groundbreaking elements that other blockchains lack. This is evident in its daily user growth and transaction volume leadership, fostering a network effect where more products attract more users, leading to increased liquidity within the ecosystem. As liquidity flows into the ecosystem, it spreads across various projects, especially LSDs, an underexplored but promising niche.

We believe Solana will grow stronger than ever with products like Jupiter, Sanctum, Raydium, Drift, SolBlaze, etc. These reasons drive our desire to become a part of this remarkable ecosystem, allowing users to optimize their LST assets.

5/ Security Commitment

We successfully passed an audit by leading security firm SlowMist. Your assets are protected, and so is the protocol.

With a zero-tolerance policy for vulnerabilities, iLoop's smart contracts have undergone rigorous inspections by top-tier security companies.

6/ What’s Next?

In the near future, we plan to enhance community programs to drive iLoop's growth. On the product side, we will evaluate additional LSTs for listing on the platform, making it more accessible and user-friendly.

To deliver real value and build trust, we will continuously update and improve our product, actively listening to and addressing feedback and suggestions from the community.

As LSDs on Solana continue to expand, offering more opportunities for users, iLoop is poised to play a pivotal role in adding further value to this evolving sector.