How to Leverage Liquid Staking Tokens with Aqua Protocol: Example with Hipo Finance and hTON

Think liquid staking protocols can't earn Open League drops? Think again! We'll show you how to make it happen.
Want to boost your staking rewards and earn extra drops from Ton Foundation? Let’s explore a looping (spot leverage) strategy using Hipo Finance and their LST token, hTON, in Aqua Protocol.

What is Looping and How Does It Work?
Looping is a strategy that increases collateral and returns by using spot leverage. You deposit assets in Aqua Protocol, mint AquaUSD, and then use AquaUSD to purchase more assets to deposit back into Aqua. This process repeats, boosting your collateral and yield.

Example with Hipo Finance and hTON:
1. Deposit and Minting: Deposit your TON in Hipo Finance to receive hTON. Then, use hTON as collateral in Aqua Protocol to mint AquaUSD.
2. Exchange and Repeat: Swap AquaUSD for TON, deposit it back into Hipo Finance to get more hTON, and repeat the process.
3. Increase Earnings: The more hTON you lock in Aqua Protocol, the higher your returns. This includes better staking yields and more points for Open League from Aqua Protocol deposits.

Advantages of Looping with hTON:
+ Higher Rewards: Reusing LST tokens increases staking yield and TON’s growth potential.
+ Extra Bonuses: Increasing your collateral boosts your chances of earning drops from Ton Foundation, including the Open League airdrop. Just mint a DeFi badge first.
+ Liquidity Retention: You don’t need to withdraw or sell your liquid staking tokens to earn with Aqua. Keep your positions and boost returns through leverage.

This strategy works with all assets supported by Aqua Protocol, significantly enhancing your staking and DeFi operations. Aqua Protocol helps you achieve better results in crypto investing without selling your assets.

Try looping and boost your earnings with Aqua Protocol! 🚀

Links:
Hipo Finance
Mint AquaUSD
Risks