Net APY at 14.9×
12.59%
7D Avg
7.39%
30D Avg
9.34%
Score
82
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Net APY
12.59%
Safety
82
Gross yield
52.62%
Liq. buffer
−3.3%
Net APY = collateral yield 3.52% × leverage − borrow cost 2.87% × (leverage − 1), borrowing on Morpho Blue sUSDS/USDT (Ethereum). Rates move; re-check before entering.
Only a 3.3% collateral price drop would trigger liquidation at this leverage.
Notice — leveraged position with liquidation risk. Supply sUSDS on Morpho Blue, borrow USDT, swap back into sUSDS and repeat. Leverage multiplies the gap between the Sky Savings Rate and the USDT borrow cost. LLTV 96.5% is the liquidation point.
On Morpho Blue the LLTV is the liquidation point, not a soft borrow cap. 96.5% is both the most you can borrow and the price at which a liquidator arrives — there is no e-mode and no separate, more forgiving threshold behind it. Your entire buffer is 96.5% minus your LTV: about 6.7% of collateral value at 10x, and about 1.3% at the theoretical ceiling. A 1.3% wobble in the sUSDS/USDT oracle is not a rare event.
Both legs of your spread move on their own. The collateral leg is the Sky Savings Rate, which Sky governance changes by vote; the debt leg floats on Morpho's AdaptiveCurve IRM, which can move percentage points within an hour as utilisation shifts. Net return is `base + (base - borrow)*(L-1)`, so at high leverage a small move in either leg becomes a large move in what you actually earn.
Size against the borrowable column, not the market size. This market runs at high utilisation, so only a fraction of the deposits is lendable at any moment — and the moment you most want to borrow in order to deleverage is the moment utilisation is highest and the rate is worst.
The unwind is the loop run backwards, and it pays the same slippage a second time. If you can already fund the target collateral, one deposit and one borrow reaches an identical position — same supply, same debt, same liquidation price — with a fraction of the transactions. How looping maths works walks through why.
Acquire sUSDS on Ethereum. Two routes: deposit USDS into the Sky Savings module at app.sky.money, or swap `USDC → sUSDS` directly on a DEX aggregator (OKX Swap / 1inch). Compare both and take whichever gives more — the swap skips a step but is not automatically the better fill.
Go to the sUSDS/USDT market on Morpho and connect your wallet. Read the market header before anything else: LLTV 96.5%, and on Morpho Blue the LLTV is both the maximum borrow LTV and the liquidation point. There is no e-mode and no separate liquidation threshold buffer.
In the market panel, use Add Collateral and supply your sUSDS. Morpho Blue collateral does not earn lending interest from Morpho itself — your collateral leg is sUSDS's own share-price accrual (the Sky Savings Rate), which keeps running while it sits as collateral.
Borrow USDT against the collateral. Size against the market's available (borrowable) liquidity, not its headline size — utilisation on this market runs high, so only a fraction of the deposits is actually lendable at any moment, and a large borrow pushes the AdaptiveCurve rate up for you as you take it.
Swap the borrowed USDT into sUSDS and add it as collateral again. Repeat until you reach your target leverage. Each round trip costs gas plus swap slippage, so two or three rounds already capture most of the available leverage. Use the leverage slider on this page to see net APY and the liquidation buffer at each level before you commit.
If you already hold the full collateral amount, you do not need to loop at all. Looping from $10,000 at 96.5% LLTV converges on roughly $285,700 supplied and $275,700 borrowed (~28x). If you already hold $285,700 of sUSDS, deposit it and borrow $275,700 in one step — identical supply, debt, leverage and liquidation price, with far fewer transactions and no repeated swap slippage. Looping is a funding technique for reaching a position you cannot fund outright — not a way to make one safer. The arithmetic is worked through in how looping maths works.
Track the position's LTV against the 96.5% liquidation point continuously. At 10x the buffer is only about 6.7% of collateral value; at 5x it is about 17%. To close, unwind in reverse: withdraw a slice of sUSDS, swap to USDT, repay, and repeat until the debt is zero and the collateral is back in your wallet.
