Looping maxBTC

Strategy Guide

A guide to using leverage strategies (“looping”) to maximize your maxBTC yields on Amber Finance.

Understanding Leverage Strategies

Looping lets you amplify the staking yield of maxBTC by borrowing Bitcoin LSTs against your maxBTC collateral and swapping it to redeploy into more yield-bearing maxBTC, repeatedly, to multiply your exposure.

Amber offers pre-configured loops with up to 12x leverage.

How Looping Works

Deposit maxBTC collateral
Borrow any supported Bitcoin LST (e.g., LBTC, solvBTC)
Swap borrowed assets into maxBTC (0.05% swap fee)
Earn yield on the full leveraged maxBTC position

Visual Guide: Leverage Flow

Key Components:

maxBTC: Your Bitcoin exposure and yield-bearing asset
Borrow: Access to multiple Bitcoin LSTs for borrowing
Swap: Seamless conversion between Bitcoin LSTs
Loop: Continuous cycle to amplify your position

Example: maxBTC - LBTC Yield Amplification

maxBTC Yield: 12% APY
LBTC Borrow Rate: 2.5%
Initial deposit: $10,000 in maxBTC
Target leverage: 3×
Effective position size: $30,000 in maxBTC equivalent
Effective debt size: $20,000 in LBTC
Gross yield: (12% × 3) -(2.5% x 2) = 31% APY

NOTE: These are only exemplary values