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LRTs

TL;DR

LRTs (Loophole Run Tokens) power the protocol's collection-specific trading strategies — one per supported NFT collection. Each LRT bootstraps a perpetual trading cycle through a presale, then runs it perpetually: acquiring NFTs, auctioning them, and burning a portion of supply after every sale, ultimately concentrating value over time.

Purpose

  • Run each collection's trading cycle: Each LRT independently operates a trading strategy for a specific collection.
  • Concentrate deflation and yield at the collection level: Each LRT has its own Afterburner and fee pool. Buyback-and-burn pressure and staker yield accrue directly to that collection's token holders — not diluted across the broader ecosystem.

How It Works

Loophole deploys one LRT per supported NFT collection: $PUDGYRUN (Pudgy Penguins), $APERUN (Bored Apes), $PUNKRUN (Cryptopunks), etc. Each LRT pairs with $LOOP.

Every LRT runs a presale, priced in $LOOP, acquiring capital to bootstrap the strategy. 20% of raised funds provide initial pool liquidity into the token's LP, 80% is deposited into the Open Bid to fund initial NFT acquisitions.

Each LRT runs its own "loop" - a four-phase trading strategy: Fund → Buy → Sell → Split.

Presalers are Creditors

Presalers who deposit LOOP during the presale receive credit positions — created at pool initialization when the LRT price equals its BLV, giving presalers the best entry.
Credit positions earn yield via the LRT's swap fees in perpetuity and can be unwound for spot tokens at any time.

See For Presalers.

Deflation

After each auction, the Split routes 30% of proceeds to the Afterburner: a leveraged buyback-and-burn mechanism. Each burn reduces the number of tokens sharing the reserves. At the same time, trading volume continuously grows those reserves. Both forces push the per-token floor upward independently — and simultaneously.

Ecosystem value accrual

The remaining 70% converts to LOOP and deposits into LOOP reserves, permanently raising LOOP's BLV. Because every LRT pairs with LOOP, a rising LOOP floor lifts every LRT's floor.

Swap fees

Every LRT↔LOOP swap incurs a 4% fee:

  • 2% → Open Bid. Replenishes the standing bid that funds NFT purchases.
  • 1% → Stakers. Distributes to presalers holding credit positions and token stakers.
  • 1% → Creator royalties. Flows to the original NFT collection creators.