GM, In a bear market like this, optimizing stablecoin strategies in DeFi can be one of the safest ways to generate passive yield and compound capital while waiting for the next expansion cycle. So let’s break it down clearly: What Is Stablecoin Looping And Why Is It Still Hot in 2026? Looping = You deposit stablecoins $USDC/$USDT as collateral → borrow stablecoins at low interest → swap if needed → deposit again → repeat 3–8 times. Result: – you multiply exposure to base yield. – base stablecoin yield: ~4-12% APY (lending, RWA, basis trades). – with looping: 15-30%+ APY. Even higher if incentives, points, or airdrops are included. It’s essentially leveraged yield farming but with lower volatility because the underlying asset is stable. Risks still exist: - liquidation risk if LTV too high. - borrow rate spikes. - smart contract exploits. Regulatory pressure especially US discussions about restricting stablecoin yield though DeFi remains permissionless for now. Now let’s look at some of the top strategies. 1️⃣ @Morpho + @Aave - #Ethereum / #Base / #Arbitrum >Base APY: 5–10% USDC/USDT lending >Strategy: Deposit USDC → borrow USDC/USDT ~2-5% → redeposit → loop 3–5x >Effective APY: 15-25%...