spectra_get_looping_strategy
Calculate projected yields and risk for a leveraged fixed-yield strategy using Spectra PT and Morpho looping. Enter chain and PT address to see APY at up to 20 leverage levels.
Instructions
Calculate a leveraged fixed-yield strategy using Spectra PT + Morpho looping.
Strategy: Deposit asset -> mint PT on Spectra -> use PT as collateral on Morpho -> borrow underlying -> deposit again -> repeat. Each loop multiplies yield exposure.
Returns projected yields at different leverage levels (1x to max safe leverage), effective APY, and risk parameters.
Automatically fetches the live Morpho borrow rate and LLTV when a matching market exists. You can still override morpho_ltv and borrow_rate manually if needed.
NOTE: Looping requires a Morpho market that accepts the specific PT as collateral.
Risk context:
Borrow rates are variable. A 5% spread (7% yield - 2% borrow) can turn negative if borrow rates spike above your fixed yield. Monitor rates in Morpho.
Higher leverage amplifies both returns and liquidation risk. Consider keeping 1-2 loops below maximum for safety buffer.
Entry cost (price impact) compounds across loops — each iteration faces degraded effective pool liquidity.
Use morpho_list_markets to find available Morpho markets. Use spectra_scan_opportunities to discover the best looping opportunities across all chains with capital-aware sizing.
Input Schema
| Name | Required | Description | Default |
|---|---|---|---|
| chain | Yes | The blockchain network | |
| pt_address | Yes | The PT contract address to loop | |
| morpho_ltv | No | Override Morpho LTV ratio (e.g. 0.86 = 86%). If omitted, auto-detected from Morpho. | |
| borrow_rate | No | Override Morpho borrow rate in % APY. If omitted, fetched live from Morpho. | |
| max_loops | No | Maximum number of loop iterations to calculate (default 5) |