Looping is one of the most powerful ways to amplify both your yield and YO Points. By borrowing against your deposits and redeploying, you increase your exposure as well as your rewards.
However, not everyone wants the same level of control. Some prefer hands-on management, others want guided automation, and some just want a set-and-forget vault. YO integrates with Morpho, Euler, Contango, and IPOR to cover this entire spectrum.
DIY Farmers: Morpho & Euler
Who it’s for: Morpho and Euler are the natural home for farmers who want to manage every part of their leverage directly. You’ll be comfortable watching metrics like loan-to-value (LTV) ratios, borrow rates, and liquidation thresholds, and actively rebalancing positions to stay safe.
How it works: Looping here means supplying yoTokens as collateral, borrowing the base asset against them, minting more yoTokens, and redepositing. On Morpho, you do this step-by-step. On Euler, the Multiply feature packages the cycle into a single transaction. In both cases, the key parameter is the LTV ratio, which represents how much you’ve borrowed relative to your collateral. Morpho supports LTVs up to 91.5%, while Euler markets generally target around 90%. The closer you push to the maximum, the more leverage you create, but the thinner your buffer becomes.
YO Points impact: YO Points are calculated on your deposit base, so looping multiplies that base. On Morpho, you can loop up to 11x, which would get you 11x Points, while on Euler, you can loop up to 10x depending on the market. A single deposit might earn steady yield and Points, but each additional loop layers more yoTokens into the system, scaling both. This is why loopers often climb the leaderboard faster than passive depositors.
Risks: High LTV ratios increase the risk of liquidation, since even small swings in yields or collateral values can push a position over the line. Borrow costs also scale with each loop, which can eat into net yield if not managed carefully. Monitoring is essential, as interest rates are variable and health factors can change quickly. Gas costs should also be considered, especially on Morpho, where multiple loops mean multiple transactions.
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Assisted Automation: Contango
Who it’s for: Contango is ideal if you want leveraged looping without the hassle of executing each step manually. It’s a good fit if you prefer a cleaner workflow and better visibility into your positions while still keeping control over leverage settings.
How it works: Instead of repeating the cycle of lending, swapping, and borrowing, Contango executes everything in a single flow. You choose your desired leverage level and the platform carries out the necessary steps behind the scenes. The interface presents important information such as entry price, liquidation price, liquidation buffer, return on equity (ROE), and Points multiplier before you commit, so you know exactly how your position is structured.
YO Points impact: Contango positions scale your deposit base just like manual looping, but with the added advantage of transparency. Contango enables looping up to 10x, which would get you 10x Points on your initial collateral. By showing you the YO Points multiplier alongside expected returns and liquidation metrics, Contango helps you weigh risk and reward more clearly.
Risks: The risks remain the same as any leveraged strategy. If your liquidation buffer becomes too thin, your position may be liquidated. Borrowing costs must be considered to ensure that additional yield and Points outweigh expenses. Market volatility and smart contract risks are still present, including exposure to Contango’s own contracts.
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Fully Automated: IPOR Fusion
Who it’s for: IPOR Fusion vaults are designed for you if you want a fully passive approach. These vaults suit investors who want high yield and YO Points without the need to manage LTV ratios, monitor borrow rates, or worry about liquidations.
How it works: Fusion vaults, curated by Clearstar Labs, handle the entire looping strategy on your behalf. You deposit assets such as USDC or ETH, and the vault automatically loops them into yoUSD or yoETH with leverage. The vault manager oversees rebalancing, liquidation buffers, and redeployment across strategies, delivering leveraged exposure while removing the need for active management. Vaults have deposit caps to maintain strategy profitability.
YO Points impact: Fusion vaults come with boosted multipliers, up to 6x YO Points, and combine this with competitive APYs. Whether you deposit USDC into the yoUSD Loooper vault or ETH into the yoETH Loooper vault, you benefit from both strong yields and efficient Points farming without direct involvement.
Risks: The main tradeoff is control. By delegating to the vault manager, you rely on their execution and risk management. Vaults also have deposit caps that can limit available capacity. Like all DeFi strategies, smart contract risk is present, although audits and professional oversight help mitigate it.
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Conclusion
Looping is a powerful way to amplify yield and YO Points, but the right approach depends on your risk appetite and how involved you want to be:
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DIY: Morpho & Euler
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Assisted automation: Contango
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Fully automated: IPOR Fusion
Whether you’re a hands-on farmer or a hands-off investor, YO offers a looping strategy that fits your style.