Description
Loop is a money market protocol built around the concept of smart collateral, allowing users to utilize liquidity pool tokens or lending receipt tokens as collateral for maximum capital efficiency. The protocol supports three main participant roles: Lockers, who qualify for emissions and protocol revenue; Loopers, who pay interest in exchange for leveraged yield and points; and Lenders, who receive interest paid by Loopers. Loop's building blocks include Looped LP Strategies for increasing LP exposure and looping yield and points, a Yield Meta Derivative (lpETH) that provides diversified real yield from multiple leveraged LP strategies, and a Dynamic Liquidity Vault that pairs LOOP with lpETH for governance participation, boosted emissions, and revenue share. The protocol primarily serves users seeking to maximize returns on restaking and liquidity provision positions within the crypto ecosystem.