Leverage Loops - Enso Developer Documentation

These bundles automate leverage strategies, where an asset is used as collateral to borrow another asset, which is then swapped back into the collateral and re-deposited to amplify yield, all within a single transaction.

Note on Route Mechanics: Borrow amounts are fixed in the bundle, so each borrow must stay within the market’s loan-to-value limit for the collateral deposited before it. The enso route steps are calculated at execution time, so the exact swaps may vary based on real-time market conditions.

wstETH Leverage Loop on Aave V3 (Arbitrum)

Loop wstETH on Aave V3 on Arbitrum: supply wstETH as collateral, borrow WETH, route it back to wstETH and re-deposit, twice.

const wstETH = "0x5979D7b546E38E414F7E9822514be443A4800529" as Address;
const aArbwstETH = "0x513c7E3a9c69cA3e22550eF58AC1C0088e918FFf" as Address;
const WETH = "0x82aF49447D8a07e3bd95BD0d56f35241523fBab1" as Address;
const aaveV3Pool = "0x794a61358D6845594F94dc1DB02A252b5b4814aD" as Address;

const bundle = await client.getBundleData(
  {
    chainId: ARBITRUM_CHAIN,
    fromAddress: userAddress,
    routingStrategy: "delegate",
  },
  [
    {
      protocol: "aave-v3",
      action: "deposit",
      args: {
        tokenIn: wstETH,
        tokenOut: aArbwstETH,
        amountIn: "1000000000000000000", // 1 wstETH
        primaryAddress: aaveV3Pool,
      },
    },
    {
      protocol: "aave-v3",
      action: "borrow",
      args: {
        collateral: wstETH,
        tokenOut: WETH,
        amountOut: "600000000000000000", // 0.6 WETH
        primaryAddress: aaveV3Pool,
      },
    },
    {
      protocol: "enso",
      action: "route",
      args: {
        tokenIn: WETH,
        tokenOut: wstETH,
        amountIn: { useOutputOfCallAt: 1 },
        slippage: "50", // 0.5%
      },
    },
    {
      protocol: "aave-v3",
      action: "deposit",
      args: {
        tokenIn: wstETH,
        tokenOut: aArbwstETH,
        amountIn: { useOutputOfCallAt: 2 },
        primaryAddress: aaveV3Pool,
      },
    },
    {
      protocol: "aave-v3",
      action: "borrow",
      args: {
        collateral: wstETH,
        tokenOut: WETH,
        amountOut: "300000000000000000", // 0.3 WETH
        primaryAddress: aaveV3Pool,
      },
    },
    {
      protocol: "enso",
      action: "route",
      args: {
        tokenIn: WETH,
        tokenOut: wstETH,
        amountIn: { useOutputOfCallAt: 4 },
        slippage: "50", // 0.5%
      },
    },
    {
      protocol: "aave-v3",
      action: "deposit",
      args: {
        tokenIn: wstETH,
        tokenOut: aArbwstETH,
        amountIn: { useOutputOfCallAt: 5 },
        primaryAddress: aaveV3Pool,
      },
    },
  ],
);

await sendSmartWallet(bundle.tx, bundle.gas);

Route Mechanics:

Deposit 1 wstETH into Aave V3 as collateral.
Borrow 0.6 WETH against it, route the WETH to wstETH and deposit it.
Borrow another 0.3 WETH, route it to wstETH and deposit it.
Ends with ~1.72 aArbwstETH of collateral against 0.9 WETH of debt.

Flashloan Loops

A flashloan reaches the target leverage in one step instead of repeated borrow rounds: borrow the extra exposure up front, deposit everything, then borrow against the full position to repay the flashloan.

Flashloan examples

Morpho, Alchemix and Aave V3 eMode leveraged positions opened with a flashloan

Deposit with Leverage

A single deposit, borrow, swap and re-deposit round on Aave V3

​wstETH Leverage Loop on Aave V3 (Arbitrum)

​Flashloan Loops

Flashloan examples

Deposit with Leverage

wstETH Leverage Loop on Aave V3 (Arbitrum)

Flashloan Loops