The crowd you loop with

A loop's collateral yields 6% and the borrow rate is 6%. What does a 3x loop earn?

• 18%, three times the collateral's yield
• 6%, the same as not looping
• 0%, because the borrow cost cancels the yield

Why do loopers repaying their loans help the loops that stay open?

• Repayments are paid out to the remaining loopers as a bonus
• Repayments lower the reserve's utilization, so the shared borrow rate falls
• Repayments raise the collateral's staking yield