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For LOOP Holders

TL;DR

Holding (or staking) $LOOP is the easiest way to maintain exposure to the Loophole ecosystem.

What You Get

One position captures the entire ecosystem. The BLV (floor price) can only move up — every collection's auctions feed the same reserves. Staking yield scales with all LRT trading activity across all collections, not just one.

How It Works

Every Dutch auction's Split directs 70% of sale proceeds into $LOOP reserves, permanently raising $LOOP's BLV (Baseline Value), a programmatically enforced floor price backed by real reserves that can only increase over time. Every collection's auction proceeds flow into the same reserves, so more collections means more auctions feeding the same floor.

Staking LOOP earns you 1% of LOOP↔ETH swap volume in fees. Since every LRT pairs with LOOP, all collection-level trading activity cascades into LOOP↔ETH volume as participants enter and exit positions. Higher ecosystem activity means higher staking yield.

How to Participate

  1. Hold for passive floor appreciation. Every auction across every collection raises your BLV floor. No action required; just hold LOOP and benefit from ecosystem-wide growth.

  2. Stake for active fee income. Staking earns 1% of LOOP↔ETH swap volume, distributed proportionally across all stakers. Evaluate whether current LOOP↔ETH volume justifies staking versus holding.

Risks

  • LOOP's market price trades above BLV and can decline toward it; the floor rises but the price above it fluctuates
  • Staking yield depends on LOOP↔ETH trading volume, which varies with market conditions
  • New collection launches increase reserve deposits but carry independent execution risk at the LRT layer
  • BLV floor appreciation is permanent but gradual; short-term price movements may not reflect it