Liquid Looping is a DeFi primitive that supercharges staking by “looping” your assets through liquid staking tokens (LSTs) and lending protocols. Instead of a single stake, your deposit is recursively staked—stake, borrow, re-stake, repeat—achieving significantly higher yields with marginally higher risk than direct staking.
A Liquid Looping Token represents a user's staked asset, plus any yield accrued from the protocol’s underlying automated looping strategy.