# Yield-looping Raga Finance’s **Yield-looping Vaults** utilise leverage to allow the users to double down on their favourite strategies. This allows users to earn 2-3 times more on their favourite strategies, while controlling their own risk vs reward tradeoffs. ### **How It Works** The yield-looping strategy takes advantage of the difference between the yield generated through a DeFi protocol and the cost of borrowing the input asset. For example, the most popular is a leveraged liquid staking strategy. Assume that liquid staking ETH through Lido has a staking return of 4%. Also, you can borrow ETH on Aave at 2%. Then, if you just stake ETH on Lido, you earn 4%. Instead, if you use the wstETH (Lido-staked ETH) as collateral to borrow more ETH and stake, you earn an extra 2% (4%-2%) return. The higher the leverage, the larger the earnings. In this case, for a 3x leverage, the returns generated become 8% against a base return of 4%, doubling the returns. Summary: * Hold wstETH, return = 4% * Leverage liquid stake at 2x leverage, earn 2\*4% = 8%, pay interest = 2%, net return = 6% ### **User Benefits** * **Increased returns:** Higher returns by doubling down on strategies that you believe in * **Simplified strategies:** Raga abstracts out the complexities and allows the user to single click open and close their positions * **Transparent**: User has complete control of their assets, and can visualise the risk reward curve through simplified parameters shown by Raga ### **Supported Networks** Raga Finance will soon go live with its first yield-looping vaults in partnership with [Spectra](https://www.spectra.finance/) and [Hemi](https://hemi.xyz/). You can get yourself whitelisted and read more about the vaults [here](/hemi/about-hemi.md) --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://docs.raga.finance/strategies/yield-looping.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.