Leverage & Directional Plays

Strategy	Core Idea	Setup	Key Risks / Controls
Recursive Long (“Looping”)	Deposit $LUNC → Borrow $USDC → Swap back to $LUNC → Repeat 3-5 ×. You amplify exposure while farming lending spread.	1) Open Borrowing Account A.2) Deposit $LUNC, borrow 50 % LTV in USDC.3) Swap USDC→LUNC; redeposit.4) Stop when Health Factor ≈ 1.5. [oai_citation:0‡Navigation	Alpaca Finance](https://docs.alpacafinance.org/alpaca-finance-2.0/step-by-step-guide/looping-strategies?utm_source=chatgpt.com)
Stablecoin Short	Bearish on $LUNC? Borrow LUNC against USDC collateral, sell for USDC, plan to buy-back lower.	1) Deposit USDC in Borrowing Account B.2) Borrow $LUNC, Swapto USDC.3) When price falls, buy back cheaper & repay.	Sudden rallies. Set stop-loss buy orders; keep borrow APR under 20 %.
Perp Proxy	Pair Looping Long with a Stablecoin Short in a second account to mimic perpetual-futures leverage but with on-chain transparency.	Long-term directional conviction with hedging flexibility.	Maintain separate accounts so each HF is independent.