Looping & Strategies

Looping multiplies your exposure to an asset by repeatedly lending, borrowing, and re-depositing. Strategies builds on this by scanning 40+ markets across P0's integrated venues to surface the best yield opportunities and let you capture them in one click.

How Looping Works

The basic concept:

1. Deposit Asset A as collateral.
2. Borrow Asset B against your collateral.
3. Swap B for A on a DEX.
4. Deposit the additional A, increasing your collateral.
5. Repeat.

Each cycle increases your exposure to Asset A while building up debt in Asset B. The theoretical maximum leverage for a pair (using Initial weights) is:

Max Leverage = 1 / (1 - Asset Weight / Liability Weight)

For example, with an asset weight of 90% and liability weight of 100%:

Max Leverage = 1 / (1 - 0.9/1.0) = 10x

In practice, P0 builds loops atomically in a single transaction using flashloans. Instead of iterating manually:

Start flashloan
  Borrow $60 of B (the full leveraged amount)
  Swap B to A via DEX (one set of swap fees + slippage)
  Deposit A ($10 initial + $60 from swap = $70 total)
End flashloan

Result: $70 in deposits, $60 in debt, net value $10, but with 7x exposure to Asset A's price movement.

How to Loop on P0

P0 provides looping directly from both the deposit and borrow action boxes.

Looping from Deposit

1. Select the asset you want to deposit (e.g. SOL).
2. Enter your deposit amount.
3. Click the Loop toggle to expand looping options.
4. Select the asset to borrow (e.g. mSOL).
5. Use the Leverage slider to set your desired leverage. The app shows the maximum leverage available for the pair.
6. Review the NET APY, collateral, and health preview.
7. Click Loop to execute. The entire leveraged position is built atomically in a single transaction.

Looping from Borrow

1. Select the asset you want to borrow (e.g. BONK).
2. Click the Loop toggle to expand looping options.
3. Under Available Collateral, select an existing collateral asset from your account (e.g. SOL).
4. Use the Leverage slider to set your desired leverage.
5. Click Loop to execute.

Loop Mode

When your portfolio contains a pair of correlated assets (e.g. LST/SOL) or one volatile asset and one stable asset, P0 shows Loop Mode in the portfolio view. Loop Mode displays additional information specific to looped positions:

• Leverage -- Your current leverage multiplier.
• Net Balance -- The net value of your position (collateral minus debt).
• Net Yield -- The combined yield after accounting for borrow costs.
• Liquidation Price -- The price at which your position would be liquidated, if applicable.

Loop Mode also provides two shortcut buttons:

• Increase Leverage -- Opens the borrow-side looping interface to add more leverage to your existing position.
• Unwind Loop -- Opens the collateral repay interface to partially or fully close your looped position by repaying debt with collateral.

Cross-Venue Looping

This is where P0's prime broker architecture creates something new. Because P0 unifies collateral across venues, you can loop across venue boundaries:

Deposit on Kamino at a high lending rate, borrow on P0 at a lower rate, and use leverage to loop the spread.

On isolated venues, the lending rate is always lower than the borrow rate for the same asset (that is how lending protocols work). But across venues, a high lending rate on Kamino and a low borrow rate on P0 can create a positive spread. P0 lets you use your Kamino deposit as collateral to borrow on P0, and then lever up on that spread.

This kind of capital-efficient interest rate arbitrage across venues was not possible before P0.

Strategies

Strategies is P0's recommendation engine that continuously monitors both P0 and its integrated venues (Kamino, Drift) to identify the best yield opportunities.

Unlike vault products where a centralized manager runs strategies and charges fees, Strategies surfaces the trades and lets you execute them directly. You control the position, see exactly where the yield comes from, and pay no management fees.

What Strategies Surfaces

• Rate trades -- Deposit at a higher rate on one venue, borrow at a lower rate on another, loop the spread.
• Leveraged directional trades -- Go long an asset with leverage while capturing its base yield (e.g., staking rewards). In favorable market conditions, the yield can exceed borrowing costs, meaning you get paid to maintain leveraged exposure.
• Carry trades -- Assets like JLP appreciate in value independently of lending yield. Strategies factors in both the lending rate and native asset appreciation.

How to Use Strategies

1. Visit app.0.xyz/strategies.
2. Browse the available strategies. Each one shows the assets involved, the expected yield breakdown (base rate, emissions, asset appreciation), and the borrow cost.
3. Select a strategy. If you do not hold the required deposit token, the app opens an Asset Swap step first, letting you swap any token into the required asset without leaving the flow.
4. In the Enter Strategy step, set your leverage using the slider and review the NET APY, health, and collateral preview.
5. Toggle "Create New Account" if you want to isolate this strategy in its own account (recommended for preserving Emode benefits).
6. Click Loop to execute. The entire position is built atomically.

Smart Account Management

If you create a leveraged loop using Asset A as collateral, opening a separate loop that borrows Asset A would conflict. Strategies handles this by creating a new isolated Account when needed. You can also toggle "Create New Account" manually when entering any strategy to ensure it runs in its own account. Each strategy runs in its own loop with clear visibility into leverage levels and liquidation prices.

Debt Swap and Collateral Swap

You can modify positions mid-trade without unwinding and rebuilding. Swap your debt to a lower-rate asset, or swap your collateral to a higher-yielding one, all without closing your position. See Managing Your Account for full details on collateral and debt swaps.

Unified PnL

P0 tracks your returns across all integrated venues in a single view. The PnL system captures:

• Native yield and emissions from venues like Kamino and Drift
• Open positions on P0, including individual strategy legs
• Debt costs when running leveraged strategies
• Native asset appreciation separate from lending yield (e.g., JLP can appreciate vs USDC independently of the lending rate earned on top)

This eliminates the need to manually aggregate returns across multiple platforms and reconcile different position sizes, venue-specific yields, and borrowing costs.

Costs

The primary cost of looping is swap fees and slippage, incurred once when opening the position and once when closing it.

• Swap fees are typically around 5 bps (0.05%).
• Slippage depends on the asset pair and trade size.
• There is no dedicated looping or strategy fee.

When switching from one strategy (A/B) to another (C/D), you incur two sets of swap fees: one to close the original loop and one to open the new one.

Risks

• Liquidation -- If the price of your collateral drops relative to your debt, your account can be liquidated.
• Interest rate changes -- If borrowing rates increase or lending rates decrease, a previously profitable strategy may become unprofitable.
• Swap costs -- Opening and closing loops incurs swap fees and slippage that eat into returns.