I use Morpho to leverage loop

Let's take a scenario where you supply weETH on a Morpho market, borrow ETH against it, swap the ETH for more weETH, and repeat, amplifying your restaking yield. The same logic applies to any correlated-asset loop on Morpho (wstETH/ETH, USDe/USDC, PT-sUSDe/USDC, etc.).

What you need to monitor

Leverage looping amplifies both your gains and losses. Your main risks are getting liquidated, the spread between your yield and borrowing cost turning negative, and security incidents affecting the underlying protocols your loop depends on.

What Otomato watches for you

Otomato automatically detects and monitors your Morpho looped positions and alerts you only when something relevant happens:

Bad debt / security incidents

Because leverage loops often depends on multiple protocols, a security issue anywhere in the chain puts your position at risk.

Otomato surfaces security incidents as soon as credible signals appear, covering not just Morpho itself, but also underlying protocols and assets your loop depends on.

• "A vulnerability has been detected on Morpho. View source."

• "A critical vulnerability has been reported on EtherFi. View source."

Depegs

If your looped asset depegs from its correlated pair, your collateral value drops while your debt stays the same, pushing you closer to liquidation.

Otomato continuously monitors the price ratio between your collateral and debt assets, and alerts you as soon as a meaningful deviation is detected.

Example notifications

• "weETH is trading at 0.991 ETH."

Liquidation risk

Leverage looping means tight health factors. Otomato monitors them very closely and alerts you as soon as you approach dangerous levels.

Example notifications

• "Your health factor on the weETH/ETH Morpho market is below 1.03. Pay attention!"

Net yield change

On correlated-asset loops (e.g weETH/ETH), what matters most is the spread between what you earn and what you pay. If your borrowing rate exceeds your yield for a sustained period, your position is losing money.

Otomato tracks your net yield and alerts you when your loop turns unprofitable, so you can decide whether to keep the position open or unwind it.

Example notifications

• "Your net yield on the weETH/ETH Morpho market has been negative for 3 days."

Borrowing rate increase

On non-correlated markets (like borrowing USDC against ETH), a borrowing rate spike directly increases your cost and can quickly erode your loop's profitability.

Otomato tracks borrowing rates on your Morpho markets and alerts you when rates rise to levels worth reassessing.

Example notifications

• "USDC borrowing rate on your ETH/USDC Morpho market is sitting at 11.5%."

Asset & protocol news

Otomato understands the full dependency chain of your loop. For example, if you're looping weETH/ETH, you'll receive relevant news about EtherFi, weETH, and Morpho.

Example notifications

• "EtherFi announced a new incentive program for weETH holders. View source."

Improvements

We're continuously looking to add support for alerts the community is asking for. If you'd like us to add a new use case, reach out on telegram.