How to Use Loopscale With BulkSOL: Borrow SOL Against Your BulkSOL Collateral

Loopscale is a Solana lending protocol that allows borrowing SOL against BulkSOL collateral. In the context of the BulkSOL yield stack, Loopscale is the mechanism that enables the leveraged trilly loop strategy — borrow SOL, buy more BulkSOL, amplify all yield streams.

This guide covers how Loopscale works with BulkSOL specifically, the borrow rate dynamics, and when the strategy is and isn’t profitable.

What Loopscale Does

Loopscale is a collateralized lending protocol. You deposit an asset as collateral and borrow a different asset against it.

For BulkSOL holders:

• Collateral: BulkSOL
• Borrow: SOL
• Use of borrowed SOL: Buy more BulkSOL on Titan

The borrowed SOL gives you additional BulkSOL exposure beyond what you could buy with your original capital. All four BulkSOL yield streams apply to the amplified position.

The Profitability Condition

The Loopscale strategy is only profitable when:

BulkSOL yield > Loopscale SOL borrow rate

BulkSOL yield (pre-mainnet): ~8.5–9.5% APY (staking + MEV) Loopscale SOL borrow rate: variable, typically 5–12% APY

At 8.5% BulkSOL yield and 6% borrow rate: Net yield on leverage ≈ 2.5% additional per loop. At 8.5% BulkSOL yield and 9% borrow rate: Net yield on leverage ≈ −0.5% per loop. The loop loses money.

Check the current Loopscale borrow rate before entering. This is not a one-time check — borrow rates are variable and can change significantly during high-demand periods.

Post-mainnet, Stream 3 (BULK Exchange fee revenue) could add 5–10%+ APY to BulkSOL yield at meaningful volume, making the spread more favorable.

Key Parameters on Loopscale

Loan-to-value (LTV) ratio: The percentage of your BulkSOL collateral value you can borrow in SOL. At 70% LTV, $100 of BulkSOL collateral lets you borrow $70 in SOL.

Liquidation threshold: If your LTV rises above a certain level (typically 80–85%), Loopscale liquidates your BulkSOL collateral to repay the SOL loan.

Health factor: A score above 1.0 means you’re safe. Below 1.0 means you’re approaching liquidation. Monitor this continuously when in a leveraged position.

Variable borrow rate: Changes based on Loopscale’s total supply and demand for SOL borrowing. During periods of high demand for SOL leverage, rates spike. During quiet periods, rates are lower.

How to Open a BulkSOL/SOL Position on Loopscale

1. Go to Loopscale (accessible via the BULK ecosystem)
2. Connect your Solana wallet
3. Select BulkSOL as collateral asset
4. Specify collateral amount
5. Select SOL as borrow asset
6. Specify borrow amount (at your chosen LTV)
7. Review: health factor, borrow rate, estimated yield spread
8. Confirm transaction

Choosing Your LTV

Conservative (50% LTV):

• Borrow $50 SOL per $100 BulkSOL collateral
• ~100% buffer before liquidation
• Lower yield amplification
• Can absorb significant BulkSOL de-peg before risk

Moderate (65% LTV):

• Borrow $65 SOL per $100 BulkSOL collateral
• ~23% buffer before liquidation
• Meaningful yield amplification
• Moderate de-peg tolerance

Aggressive (80% LTV):

• Borrow $80 SOL per $100 BulkSOL collateral
• ~6% buffer before liquidation
• High yield amplification
• Minimal de-peg tolerance — even small BulkSOL price moves can trigger liquidation

Recommendation for most users: 50–65% LTV. The additional yield from 80% LTV vs 65% LTV is modest; the additional risk is substantial.

When to Exit the Loopscale Position

Exit when any of these conditions apply:

1. Borrow rate exceeds BulkSOL yield. Run the math: if the current Loopscale SOL borrow rate is higher than BulkSOL’s yield from streams 1–3, the position is net-negative excluding Aura points.

2. Health factor drops below 1.3. Add collateral or begin unwinding. Below 1.3 health factor, a normal 5–10% market move can push you to liquidation.

3. BulkSOL shows de-peg signals. If BulkSOL trades significantly below its intrinsic NAV (the SOL it represents), the collateral value is depressed — liquidation risk increases.

The Unwind Process

Do not close your Loopscale borrow before withdrawing collateral.

Correct unwind order:

1. Identify the outermost loop (last BulkSOL position you deposited on Exponent)
2. Withdraw that BulkSOL from Exponent
3. Use withdrawn BulkSOL to partially repay the Loopscale SOL borrow
4. This frees additional BulkSOL collateral
5. Withdraw the freed collateral
6. Repeat from the outside in until fully unwound

For the full unwind walkthrough with math, see the complete loop strategy guide.

Risk Summary

Get BulkSOL to start → early.bulk.trade

Last updated: June 11, 2026. Always check current Loopscale borrow rates before entering a leveraged position.