MegaLoop
MegaLoop allows users to open a leveraged looping position using MegaEth-native liquid staking tokens.
A MegaLoop position uses one asset as collateral to generate yield and borrows another asset to increase exposure. The loop is constructed atomically, meaning the entire position is opened in a single action without manual steps.
Assets in a MegaLoop Position
Yield Asset The liquid staking token you supply. This asset continues to earn staking yield and serves as collateral for the position.
Debt Asset The asset borrowed against the collateral. This accrues interest and determines the leverage applied to the position.
Only assets supported by Orchid’s MegaLoop parameters can be used.
How MegaLoop Works
When a MegaLoop position is opened, Orchid performs the following sequence internally:
A temporary loan of the debt asset is taken
The borrowed asset is converted into the yield asset
The yield asset is supplied as collateral
Orchid borrows the debt asset against the new collateral
The borrowed amount, together with the user’s initial deposit, settles the temporary loan
Because the collateral loan-to-value is below the maximum threshold, the position remains solvent after construction.
The entire process completes in a single execution.
Position Isolation
Each MegaLoop position is created as an isolated position with its own risk parameters.
This ensures that risk from a MegaLoop position does not affect other supplied or borrowed assets in the account.
Points and rewards earned from MegaLoop activity are still attributed to the user’s main account.
MegaLoop positions are managed from the MegaLoop interface and are not shown alongside standard lending positions on the dashboard.
Important Considerations
MegaLoop uses leverage.
This increases yield potential but also increases liquidation risk. Borrow rates, asset prices, and staking token behavior all affect position health in real time.
Users should monitor health factor closely and adjust positions proactively.
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