# I'm leverage looping
## .png?alt=media\&token=9fa24d27-2c31-4553-898a-90317eee6b3b) I use AAVE to leverage loop
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Let's take a scenario where you **supply wstETH** on AAVE, borrow **ETH** against it, swap the ETH for more wstETH, and supply again, repeating the loop to **amplify your staking yield**.
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### What you need to monitor
Leverage looping amplifies both your **gains and losses**. Your main risks are **getting liquidated**, the **spread between staking yield and borrowing rate** turning negative, and **security incidents** affecting Lido or AAVE.
### What Otomato watches for you
Otomato **automatically detects and monitors** your AAVE looped positions and **alerts** you only when something **relevant** happens:
#### Obvious alerts
These are alerts that every AAVE user should monitor, regardless of strategy.
Bad debt / security incidents
If Lido or AAVE has a **security issue**, your looped position could be at risk.
Otomato **surfaces security incidents** as soon as credible signals appear so you can react quickly.
**Example notifications**
* *"Potential security issue reported affecting AAVE.* [*View source*](https://t.co/xxxxx)*"*
* *"Lido node operator reported a key compromise.* [*View source*](https://t.co/xxxxx)*"*
**Learn more**
Learn how Otomato manages security-related alerts [here](https://otomato-2.gitbook.io/otomato-docs/product/getting-started/otomato-for-security-alerts).
Depegs
If your leveraged asset depegs, your collateral value drops while your debt stays the same, pushing you closer to liquidation.
Otomato **continuously monitors** the correlated markets ratio and alerts you as soon as a **meaningful deviation** is detected.
**Example notifications**
* *"stETH is trading at 0.992 ETH."*
Liquidation risk
Leverage looping means **tight health factors**. Otomato **monitors your health factor** very closely and alerts you as soon as you approach dangerous levels.
**Example notifications**
* *"Your AAVE health factor dropped below 1.03."*
Governance actions impacting your asset
**Governance proposals** can change risk parameters, collateral factors, or asset listings, directly affecting your position's safety and profitability.
Otomato **monitors AAVE governance** and alerts you when proposals impact assets you've deposited.
**Example notification**
* *"AIP-297: Governance proposal to freeze CRV market on AAVE v2. LTV will be set to 0%, preventing new borrows against CRV.* [*View proposal*](https://governance-v2.aave.com/governance/proposal/297/)*"*
Asset/Protocol specific news
Otomato **monitors news and announcements** from the protocols and assets tied to your position, and understands the **full dependency chain** of those assets. If you're supplying wstETH, you'll be alerted about news-related to **Aave**, **Lido**, and **Ethereum**, since any of them can impact your position.
**Example notifications**
* *"BlackRock's Ethereum ETF approved for staking.* [*View source.*](https://t.co/xxx)*"*
* *"Aave launched Savings GHO (sGHO), a yield-bearing vault for GHO holders.* [*View source.*](https://t.co/xxx)*"*
* *"*Lido announced a v3 upgrade for stETH*.* [*View source.*](https://x.com/xxx)*"*
* *"Aave announced v4 deployment on Ethereum.* [*View source.*](https://t.co/xxx)*"*
Underlying yield change
The **asset underlying yield** is often what you're amplifying with your loop. When it drops significantly, your loop becomes less profitable.
Otomato **tracks underlying yields** and alerts you when your loop becomes unprofitable.
**Example notifications**
* *"wstETH staking yield dropped from 2.7% to 2.3%."*
#### Alerts for more advanced users
These alerts are valuable for users who want deeper protocol insights.
Supply cap change
**Supply and borrow caps** limit how much capital can be deposited or borrowed. When caps are reached, you can't scale your loop further.
Otomato **alerts you when caps change** for assets you're using.
**Example notifications**
* *"AAVE increased the wstETH supply cap on Ethereum by 50,000 wstETH"*
### 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](https://t.me/OxClement).