Feb 09, 2026

RWA Looping Gains Traction as DeFi Strategy Amplifies Yields Through Tokenized Asset Leverage

TLDR: RWA looping multiplies exposure by depositing tokenized assets, borrowing stablecoins, and repeating.  Base yields around 8% can reach 15-20% through leverage, but liquidation risk increases with loops.  PRIME tokens backed by home equity loans demonstrate real applications on platforms like Kamino Finance.  Smart contract risks, depeg events, and duration mismatches pose significant dangers to [...]

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Source: Blockonomi →