What is Loopfi?

LoopFi is a decentralized money market protocol on Ethereum that functions as a restaking credit hub, allowing users to lend ETH and borrow against liquid restaking token (LRT) derivatives or liquidity provider positions for leveraged yield exposure. Lenders deposit ETH to receive lpETH, a yield-bearing token that can be staked or used elsewhere in DeFi, while borrowers (loopers) collateralize yielding assets like Pendle LP tokens for eETH to borrow ETH and engage in carry trades through automated looping strategies. The system routes borrowed funds into integrated restaking and liquidity provision protocols to compound returns, with interest paid by borrowers distributed to lenders and protocol participants. Lockers provide additional liquidity or stake LOOP tokens for governance and revenue shares, all processed via smart contracts with Chainlink oracles for pricing and audited security measures.