How to Ship Leveraged Staking to Your App Without Writing a Line of Logic

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Every DeFi app wants a yield feature, but none want to build the liquidation math that comes with it.

That trade-off is why leveraged staking, colloquially “looping”, has become one of the most-used strategies in DeFi for a few key players, while staying mostly absent from the many apps that could offer it as a feature. The strategy itself is simple to describe: take a liquid staking token (LST), supply it as collateral, borrow the unstaked version of the same asset, exchange that back into the LST and supply it again. Repeat a few times and a modest yield spread compounds into something much larger. Building it safely, with loan-to-value limits, liquidation buffers and price-correlation checks that hold up when markets move fast, is a different problem entirely.

Balanced, a design-focused DeFi app, shipped that feature this week without writing any of that logic. Its new widget catalogue includes...

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