> For the complete documentation index, see [llms.txt](https://docs.looputo.xyz/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.looputo.xyz/introduction/readme.md).

# Welcome to Looputo

Self-sustained leveraged looping.

### Overview

Looputo is a non-custodial protocol for fully automated leveraged looping. It keeps a leveraged looping position self-sustained through multiple automation systems.

Deposit tokens into a supported looping market backed by an LST, a yield-bearing stablecoin, or an RWA yield token. Looputo opens the position at the leverage you choose in a single transaction. Once open, the position is continuously monitored, so you never have to manage it manually.

<figure><img src="https://1517612113-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FiyPrXoSfRikirWhKbEx7%2Fuploads%2Fgit-blob-e46ebeea63dc949923c87f7495fd12416f5a09e6%2Flooputo-architecture.jpg?alt=media" alt="Looputo runs on lending markets such as Aave, Morpho, and SparkLend, and protects each position with Liquidation Protection, Negative Carry Protection, and Leverage Peg."><figcaption></figcaption></figure>

### Limitations of Existing Protocols

Leveraged looping is one of the oldest strategies in DeFi. Many protocols offer one-click entry but leave the position unmanaged afterward, and without automation the depositor is exposed to:

* Liquidation from price swings, oracle manipulation, depegs, or protocol exploits
* Losses from unaddressed negative carry
* Missed windows to unwind during extreme market conditions
* Leverage drifting away from target over time

Other protocols run looping inside shared vaults, which carry their own limitations:

* No customization of strategy parameters
* Delayed exits through queues or epochs
* Lack of transparency in strategy execution

### Looputo's Approach

Looputo protects each position from liquidation and negative carry, adjusting leverage to keep it at its target, while each user defines their own risk parameters. Positions open and close at any time, with no queue or delay.

The automation systems include:

* **Liquidation Protection** keeps the position solvent as it approaches the liquidation threshold, mitigating the impact of market dips, price crashes, and collateral depegs, and restoring target leverage as market conditions recover.
* **Negative Carry Protection** manages negative carry risk when borrowing costs become unfavorable, unwinding before losses compound and re-levering once carry turns positive again.
* **Leverage Peg** corrects the natural drift of leverage over time: whenever leverage deviates beyond a set threshold, the position is rebalanced back to its target.