· Strategy · 5 min read
The BulkSOL + Exponent + Loopscale Loop Strategy Explained (With Risks)
The trilly loop amplifies four yield streams simultaneously using BulkSOL, Exponent Finance, and Loopscale. This guide explains the exact mechanics, concrete math, and the five risks you must understand before touching it.
The trilly loop amplifies four yield streams simultaneously. Here’s exactly how it works, the math, and the risks you need to understand before touching it.
There’s a yield strategy circulating in the Solana DeFi community that stacks four separate income streams into a single leveraged position. It uses BulkSOL, Exponent Finance, Loopscale, and Titan. Some call it the trilly loop.
This guide explains the mechanics precisely — no hype, no rounded-up numbers — and covers the risks in enough detail to let you make an informed decision.
The simple alternative (just holding BulkSOL) is genuinely good for most people. Read this guide, then decide.
What BulkSOL Actually Earns You
Before understanding the loop, you need to understand why BulkSOL is the anchor:
Stream 1: Base Solana Staking Rewards Standard Solana staking APY, approximately 7% annualized. Same as any other validator stake.
Stream 2: MEV Tips BULK validators earn tips from Solana block production. Historically adds 1–3% additional APY above base staking.
Stream 3: BULK Exchange Fee Revenue This is BulkSOL’s differentiator. BULK’s architecture docs confirm validators earn 12.5% of all exchange trading fees.
At $500M daily volume: ~$174k/day in fees at 3.5 bps taker → ~$21.75k/day to the validator set. At $1B daily: 2× that.
Stream 4: Aura Points Pre-TGE ecosystem incentives for holding BulkSOL. Exact formula undisclosed; likely weighted by size and duration.
The loop strategy is designed to amplify these four streams via leverage.
The Loop: Step-by-Step
Step 1: Acquire BulkSOL
Go to Titan Exchange (via early.bulk.trade). Swap SOL → BulkSOL. Current price: ~$87.45.
The example below uses 10 SOL (~$1,750) for illustration.
Step 2: Deposit BulkSOL on Exponent Finance
Exponent is a Solana yield protocol that accepts BulkSOL as collateral. Depositing your BulkSOL:
- Earns Exponent lending yield
- Establishes collateral base for the next step
- Earns Exponent points simultaneously
Step 3: Borrow SOL on Loopscale
Using your BulkSOL collateral, borrow SOL on Loopscale.
Critical variable: the borrow rate. This is the rate you pay on borrowed SOL. If borrow rate exceeds your BulkSOL yield, the loop loses money. Check the current rate before proceeding.
Conservative starting LTV: 60%. This gives you ~40% buffer before liquidation.
Step 4: Swap Borrowed SOL → More BulkSOL
Take your borrowed SOL back to Titan. Swap SOL → BulkSOL.
Step 5: Deposit New BulkSOL on Exponent
Add the new BulkSOL to your existing collateral position. Your collateral base grows.
Step 6: Repeat
Each iteration increases your BulkSOL exposure. You’re earning four yield streams on a position larger than your original SOL could buy.
The Math: Concrete Example
Starting capital: 10 SOL at $175 = $1,750
Loop 0 (baseline):
- 10 BulkSOL
- Earning 4 yield streams on 10 BulkSOL
After Loop 1 (60% LTV):
- Borrow 6 SOL against 10 BulkSOL
- Swap 6 SOL → 6 BulkSOL
- Total: 16 BulkSOL
After Loop 2:
- Borrow against new 6 BulkSOL: ~3.6 SOL
- Swap → ~3.6 BulkSOL
- Total: ~19.6 BulkSOL
After Loop 3:
- ~21.6 BulkSOL total
- Effective leverage: ~2.16×
- SOL debt outstanding: ~12.5 SOL
Net position: You control ~21.6 BulkSOL, owe ~12.5 SOL in debt. All four yield streams are amplified by ~2.16×. Your cost is the Loopscale SOL borrow rate on ~12.5 SOL.
Break-even check: (BulkSOL base yield + MEV + fee revenue) > (borrow rate on debt SOL). Run this calculation with current market rates before entering.
Unwind: How to Exit Safely
Unlooping in the correct order matters:
- Stop adding new loops
- Close the most recent BulkSOL deposit on Exponent (partial withdrawal)
- Use withdrawn BulkSOL to repay a portion of the Loopscale SOL debt
- Repeat from outermost loop inward until fully unwound
Do not attempt to repay debt before withdrawing collateral. Do not withdraw more than the unborrowed portion of your collateral at each step.
The Five Risks
Risk 1: Borrow Rate Volatility
SOL borrow rates on Loopscale are variable. During high-demand periods, rates spike. If borrow rate exceeds BulkSOL combined yield, you’re losing money each day the position is open. Monitor this actively.
Risk 2: Liquidation Risk
If BulkSOL’s price relative to SOL drops past your liquidation threshold, Loopscale liquidates your BulkSOL to cover the debt. At 60% LTV, you have ~40% buffer. At 80% LTV, only ~20%.
BulkSOL is a relatively new LST. De-peg events — rapid BulkSOL/SOL spread compression — are possible in stressed market conditions.
Risk 3: Three Smart Contracts
The loop uses Titan (swap), Exponent (lending), and Loopscale (borrowing). A vulnerability in any one affects your entire position. Each protocol has separate audit status and upgrade risk.
Risk 4: BULK Volume Dependency
Yield Stream 3 (exchange fee revenue) only materializes if BULK Exchange achieves meaningful volume post-mainnet. If BULK has issues at launch or takes time to build volume, Stream 3 is smaller than modeled.
Risk 5: Operational Complexity
Unlooping requires exact sequence. If you lose wallet access or make an error, you may face liquidation. This strategy requires active monitoring.
Who This Is For
The loop makes sense if:
- You are already comfortable with Solana DeFi lending protocols
- You have experience with leveraged positions and liquidation mechanics
- You actively monitor positions (daily minimum)
- You have conviction in BulkSOL’s yield streams outpacing borrow costs
- You understand the collateral ratio math and can manage it
The loop does NOT make sense if:
- This is your first leveraged DeFi position
- You cannot check positions at least daily
- You need the capital to be safe regardless of market conditions
- The borrow rate currently exceeds BulkSOL’s combined yield
The simple alternative: Just hold BulkSOL. You earn all four yield streams. You have zero liquidation risk. You have no smart contract exposure beyond BulkSOL itself. For most holders, this is the right choice.
Risk Disclaimer
This strategy involves leveraged positions that can be liquidated. Smart contract risk across three protocols. Variable borrow rates. Pre-mainnet BULK Exchange risks.
This guide is for informational purposes only. Not financial advice. Do not allocate capital you cannot afford to lose entirely.
The specific Aura points impact of the loop strategy has not been confirmed. The loop may or may not earn more Aura points than simple BulkSOL holding.
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