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![ProofOfTravis Avatar](https://lunarcrush.com/gi/w:24/cr:twitter::1324038533808640005.png) Travis💡 [@ProofOfTravis](/creator/twitter/ProofOfTravis) on x 29.9K followers
Created: 2025-07-24 21:55:18 UTC

⚠️ Loop Staking Risk

Loop staking is actually pretty common, but the risk comes if the underlying asset (wBTC) goes down. By putting your borrowed asset back into the collateral asset, if you're at risk of liquidation in a red market, you would have to sell the newly bought BTC to pay the USDC back which would have loss value in the USDC:BTC comparison.

Things to consider
✔️ have some USDC readily available to lower or pay off the loan if the market goes red
✔️ be comfortable at the liquidation level of your position.

My position
My current liquidation price is 104k Bitcoin (-12.46%). Which I would consider medium-high risk.

![](https://pbs.twimg.com/media/GwpxSJDWsAAE61L.jpg)

XX engagements

![Engagements Line Chart](https://lunarcrush.com/gi/w:600/p:tweet::1948502277075206516/c:line.svg)

**Related Topics**
[chapter 11](/topic/chapter-11)
[wbtc](/topic/wbtc)
[staking](/topic/staking)
[loop](/topic/loop)
[bitcoin](/topic/bitcoin)
[coins layer 1](/topic/coins-layer-1)
[coins bitcoin ecosystem](/topic/coins-bitcoin-ecosystem)
[coins pow](/topic/coins-pow)

[Post Link](https://x.com/ProofOfTravis/status/1948502277075206516)