Interactive calculator: watch how deposit-borrow loops compound leverage toward the 1/(1−LTV) asymptote. Adjust LTV and loop count to see effective leverage, the liquidation trigger, and the loss from a single price move.
Deposit ETH in Aave, borrow USDC, buy more ETH, repeat. Three loops creates 2.97× leverage from a single ETH — and all three positions share one liquidation trigger at −3% ETH price. The math, the cascade, and why AI yield optimizers find themselves here by default.