Leveraged Farming · Review
ActiveLoop Review 2026: Lending Market for ETH Carry Trades
Loop is a lending market built for Ethereum carry trades, letting users post liquid restaking derivatives as collateral to borrow ETH. It is small and aimed at experienced users who accept leverage risk.
By the DappsAtlas editorial team · Updated
DappsAtlas score
—/10
Not rated
Our verdict on Loop
Loop suits experienced DeFi users who already run leveraged restaking or Pendle strategies and want a market that accepts long-tail collateral for borrowing ETH. Its focus is clear and two audits are listed. The main caveat is size and transparency: TVL is only about $86,000, the homepage could not be checked, and fees and risk parameters are unknown. Treat it as a high-risk, small protocol and verify everything first.
Score breakdown
How Loop scores
- Security
- n/a
- Ease of use
- n/a
- Fees
- n/a
- Features
- 5.0/10
Scores run from 0 to 10 and are based only on facts we could verify. Where information was missing we mark the score n/a rather than guess.
What is Loop?
Loop is a lending market built for Ethereum carry trades. According to DefiLlama, users can supply a long tail of liquid restaking derivatives, including Pendle LP tokens, as collateral and borrow ETH to boost yield and points exposure.
DefiLlama files it under Leveraged Farming and lists it on Ethereum, XDC, BNB Chain and Scroll since June 2024. Total value locked is about $86,000, up roughly 19.6% over seven days, which is small. No token is listed, and two audits are noted.
The homepage could not be fetched, so this review relies on DefiLlama data only. Details on fees, risk parameters and team are not available here.
How Loop works
Loop works like an on-chain money market with a narrow focus. A user deposits an eligible asset, such as a liquid restaking token or a Pendle LP token, as collateral. Against it, they can borrow ETH.
The borrowed ETH can be put back into the same yield-bearing assets to build a larger position. This is the carry trade: the user aims to earn more yield and points on the collateral than the cost of borrowing ETH. The strategy only pays off if that spread stays positive.
If collateral value falls relative to the debt, the position can be liquidated. Loop's exact parameters, such as loan-to-value limits and liquidation rules, are not public and should be checked in the documentation.
5 features
Key features
01
Dedicated carry-trade market
Loop is built specifically for Ethereum carry trades rather than as a general-purpose lending pool.
02
Long-tail collateral
Users can post long-tail liquid restaking derivatives, such as Pendle LP tokens, as collateral.
03
ETH borrowing
Borrowed ETH can be used to increase yield and points exposure from the collateral position.
04
Multi-chain presence
DefiLlama lists deployments on Ethereum, XDC, BNB Chain and Scroll.
05
Listed audits
DefiLlama lists two audits for the protocol.
Pros and cons
What we like
- Clear, narrow purpose: lending built for ETH carry trades
- Accepts long-tail collateral that larger lending markets may not list
- Available on four chains according to DefiLlama
- Two audits are listed on DefiLlama
- Live since mid-2024, giving it some operating history
Watch out for
- Very small TVL of about $86,000 limits liquidity depth and suggests little market validation
- Leveraged carry trades can be liquidated if collateral prices fall or borrow rates rise
- Long-tail collateral such as Pendle LP tokens and liquid restaking derivatives adds layered smart-contract and depeg risk
- The homepage could not be fetched, so documentation, fees and parameters could not be checked
- No native token is listed, so incentives and governance structure are unclear
- Only two audits are listed, with no details on scope, auditors or dates
Loop fees
Fee details are not, and the homepage could not be fetched. Borrow rates, any protocol fee and liquidation penalties are not published here.
Users would see current borrow and supply rates in the app before opening a position. Network gas costs on the chosen chain also apply.
Is Loop safe?
DefiLlama lists two audits, but the auditors, dates and findings are not public. Audits reduce but do not remove smart-contract risk, and this protocol layers on the risks of the collateral assets, such as restaking protocols and Pendle pools.
Users keep custody of funds in their own wallet but deposit into smart contracts. Liquidation, oracle and depeg risks are central to this kind of product. Team, governance and any incident history are not public. Only commit what you can afford to lose.
6 steps
How to get started with Loop
- 1
Read the official documentation and audit reports before depositing funds.
- 2
Confirm which collateral assets and chains are supported in the app.
- 3
Connect a self-custody wallet and fund it with a supported liquid restaking derivative or Pendle LP token.
- 4
Check the collateral factor, borrow rate and liquidation threshold before borrowing ETH.
- 5
Start with a small position and keep a safety buffer against liquidation.
- 6
Monitor your health factor and the underlying collateral's price regularly.
Who Loop is for
Loop is for experienced DeFi users who understand leverage, liquidation and the risks of liquid restaking and Pendle positions. It is not suited to beginners or anyone who cannot monitor positions closely.
Loop FAQs
What is Loop?
Loop is a dedicated lending market for Ethereum carry trades. Users supply liquid restaking derivatives, including Pendle LP tokens, as collateral and borrow ETH to increase yield and points exposure.
Which blockchains does Loop support?
DefiLlama lists Loop on Ethereum, XDC, BNB Chain and Scroll. Which markets are active on each chain is not stated.
Is Loop risky?
Yes. Borrowing against volatile or yield-bearing collateral creates liquidation risk if collateral value drops relative to the borrowed ETH. Smart-contract and depeg risks from the underlying derivatives also apply.
Does Loop have a token?
No. DefiLlama shows no token for Loop. Any points or incentive programs would need to be confirmed on the official site.
Has Loop been audited?
DefiLlama lists two audits, but the auditors and scope are not given publicly. Check the official documentation for audit reports before depositing.
Compare
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How we checked
Sources
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