# I'm leverage looping

## <img src="https://3594873091-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FCUsr6ssg69scPnMJR3tw%2Fuploads%2FvGCnx7V6VzCBgyl3vz1R%2FFrame%20427321129.png?alt=media&#x26;token=4267fdf8-1698-4ad0-833d-41f372b1772f" alt="" data-size="line"> <mark style="color:$info;">I use</mark> Euler <mark style="color:$info;">to</mark> leverage loop

{% hint style="info" %}
Let's take a scenario where you **supply sUSDe** on an Euler market, **borrow** **USDe** against it, swap the USDe for more sUSDe, and supply again, repeating the loop to amplify your staking yield.
{% endhint %}

### What you need to monitor

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 Euler looped positions and **alerts** you only when something **relevant** happens:

<details>

<summary>Bad debt / security incidents</summary>

Because leverage loops often **depend on multiple protocols**, a security issue anywhere in the chain puts your position at ris&#x6B;**.**

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

* *"A vulnerability has been detected on Euler.* [*View source.*](https://t.co/xxx)*"*
* *"A critical vulnerability has been reported on Ethena.* [*View source."*](https://t.co/xxxx)

</details>

<details>

<summary>Depegs</summary>

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**

* *"sUSDe is currently depegging. It is now at 0.97 USDe."*
* *"USDe is currently depegging. It is now at 0.984 USDe."*

</details>

<details>

<summary>Liquidation risk</summary>

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 sUSDe/USDe market is below 1.03. Pay attention!"*

</details>

<details>

<summary>Net yield change</summary>

On correlated-asset loops (e.g sUSDe/USDe), 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 sUSDe/USDe Euler market has been negative for 3 days."*

</details>

<details>

<summary>Supply / borrow cap change</summary>

**Supply and borrow caps** limit how much capital can be deposited or borrowed on a given market. When caps are reached, you can't scale your loop further.

Otomato **alerts you when caps change** for markets you're using.

**Example notifications**

* *"Euler increased the borrow cap on the sUSDe/USDe market by 5M USDe."*

</details>

<details>

<summary>Asset &#x26; protocol news</summary>

Otomato **understands the full dependency chain** of your loop. For example, if you're looping sUSDe/USDe, you'll receive relevant news about **Ethena**, **sUSDe**, **USDe**, and **Euler**.

**Example notifications**

* *"Ethena announced a change to sUSDe staking rewards.* [*View source.*](https://t.co/xxxx)*"*

</details>

### 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).