# Sake Looper

#### **Looper Strategy**

This classic strategy allows our users to obtain recursive leverage on certain assets through **Sake Finance’s lending pools**. Through this leverage, users can typically obtain enhanced return and additional rewards given out by various protocols. The strategy is launched inside isolated smart contract wallets with strong security considerations in mind.

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#### Benefits of the Sake Finance Looper Strategy

* **Maximized Exposure:** By selecting a leverage factor, users can significantly increase their exposure to selected assets, maximizing potential rewards and returns
* **Automated Looping:** Entirely automated via smart contract wallets, eliminating manual management of lending, borrowing and swapping
* **Easy Management:** Users can track their leveraged position, increase leverage, change position size and make various tweaks with minimal effort

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#### **Sample Strategy Flow**

<figure><img src="/files/17rSswDoG5rBjTKX1twd" alt=""><figcaption></figcaption></figure>

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#### **How to Get Started**

1. **Navitate to Strategies Tab**: Head over to the **app.sakefinance.com** and click on the **Strategies** tab.
2. **Browse Strategies**: Explore the available strategies and select the **Looper strategy** with your preferred asset.
3. **Launch Looper Strategy**: Choose your asset, select the desired leverage multiplier (e.g. **3x**), and deploy the strategy.
4. **Manage Strategies**: Manage and track your active strategies under **Your Strategies** section.

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#### **Rewards Calculation**

After launching a **Looper Strategy**, users earn:

* **APY** for supplying the asset into Sake
* **native APY** of the supplied asset (e.g. the staking yield of an Astar LST)
* **Points and rewards**, such as:
  * **Sake points**
  * **Solv points**
  * **OP rewards**

Users pay:

* Borrowing cost of the borrowed asset in Sake

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#### **Why is the APY Negative?**

In some cases, the **Looper strategy** may show a **negative APY**. This happens because of **negative carry**. Some reasons include:

* **Future Points Payout Excluded**: This strategy can help users earn points that provide future rewards. However, points don't provide an immediate payout so the return is not counted in the current APY.
* **Cost of Borrowing**: Borrowed assets incur interest costs immediately. This can create negative carry since users might need to pay borrowing costs that are higher than interests earned.

In short, the strategy might earn future rewards, but the immediate cashflow is negative, resulting in a negative APY.


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