📢 User Reminder: Monitor Borrowing Rates When Looping
We understand that capital-efficient strategies like looping are popular. However, it’s important to understand the risks associated with rising interest rates—particularly when vault utilization exceeds 90%.
As utilization rate surpasses 90%, borrowing APRs can climb rapidly. A vault with 0.5% APR today may reach 5%~10% if utilization approaches 100%, impacting borrowing cost.
For users looping with slisBNB:
🔁 Debt repayment must be made in BNB
🔄 To convert slisBNB back to BNB, you can:
1️⃣ Unstake slisBNB (⏳ 7-day unstaking period)
2️⃣ Swap on PancakeSwap
🔍 Best Practices:
✅ Check utilization & interest rates regularly
✅ Maintain a buffer to avoid forced unwinding
✅ Always plan your exit before entering a loop
📣 Our goal is to support sustainable and informed DeFi participation.
Loop wisely. Stay safe. 🧠