# Introducing Loops

**Published by:** [YES collective](https://paragraph.com/@yes-collective/)
**Published on:** 2024-09-08
**URL:** https://paragraph.com/@yes-collective/introducing-loops

## Content

Introducing Loops - a new Baseline mechanic that allows users to increase their exposure to bTokens, effortlessly.What is itLooping involves repeatedly borrowing against bToken to purchase more bTokens, creating a leveraged position. When the bToken's price rises relative to the reserve asset, looped positions see amplified returns:Unlike Baseline Loans, where users have to pay interest based on the amount borrowed, Loops use a funding rate mechanism to charge fees on looped positions. In this system, the protocol automatically "shrinks" both collateral and debt over time, allowing users to maintain non-liquidatable leveraged exposure without any active management of the position.How do I loop?Baseline Loops simplifies the looping process through a simple user experience:Deposit reserves (ETH, USDB, etc) to Open and/or Increase Position.The system automatically max loops for you.Decrease and/or Close Position to un-loop collateral and return reserves.This streamlined process unlocks benefits of a leveraged position while reducing complexity to a minimum. To learn more about Loops: https://docs.baseline.markets/utility/loopsWhen do I loop?Looping tends to be most advantageous when:The bToken's price is close to its BLV, offering maximum capital efficiency and lower downside risk.You have a strong conviction in the bToken's short to medium-term price appreciation.You understand the risks involved and have a clear exit strategy.Remember, while looping near the BLV offers better capital efficiency, it should still be approached with caution and a thorough understanding of the potential outcomes.Next StepsLoops is now available for YES and (soon) MACHI. Head over to Baseline Markets to try it out: https://app.baseline.markets/

## Publication Information

- [YES collective](https://paragraph.com/@yes-collective/): Publication homepage
- [All Posts](https://paragraph.com/@yes-collective/): More posts from this publication
- [RSS Feed](https://api.paragraph.com/blogs/rss/@yes-collective): Subscribe to updates
- [Twitter](https://twitter.com/BaselineMarkets): Follow on Twitter