DeFi Looping Strategy Overview - Suilend Protocol offers looping strategies for yield farming, exemplified by the sSUI/SUI strategy with an initial APY of approximately 15% [1] - The looping mechanism involves depositing USDC, automatically borrowing SUI, staking SUI to receive sSUI, and redepositing sSUI back into Suilend [2][3][6] - Incentive programs, likely aimed at attracting liquidity, power the looping strategy through native staking yield and sSUI rewards [3] Risk Assessment - Looping strategies carry liquidation risk, particularly with high leverage, as demonstrated by a scenario where a SUI price increase above $5 could pose a risk [2] - Smart contract risk is inherent in DeFi products like Suilend, though mitigated by Suilend's position as a flagship product on Sui [4] - Adjusting leverage can mitigate liquidation risk, allowing users to maintain a low-risk profile [2] Strategy Expansion - Suilend offers various looping strategies with different APRs and plans to introduce a new xBTC looping strategy [5] - The principles of low-risk DeFi, as highlighted by Vitalik Buterin for Ethereum, are applicable to other chains incubating their DeFi ecosystems [5]