Spiral Stake amplifies your stablecoin yields through our FlashLeverage mechanism that bypasses traditional iterative looping for maximum gas efficiency. When you deposit funds, the protocol uses flash loans to instantly create your entire leveraged position in a single transaction, giving you the same exposure as multiple manual loops without the complexity or high costs. Your deposit gets converted into PT collateral that earns fixed yield until maturity. Instead of borrowing, buying more PT, then repeating this process multiple times, our FlashLeverage system borrows the full amount needed upfront via flash loan, swaps it all to PT collateral, then uses your amplified PT position to secure the borrowed funds—all atomically in one transaction. The protocol manages position isolation through individual proxy contracts while built-in safety mechanisms like liquidation buffer and safe LTV to maintain stability. When your PT matures, closing your position automatically repays all borrowed amounts and delivers your amplified yields—creating a seamless experience where your stablecoins work harder with full transparency.

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FlashLeverage Mechanism Example

Traditional looping requires multiple transactions: deposit collateral → borrow → swap to more collateral → repeat. FlashLeverage condenses this into one atomic transaction using flash loans. Example Scenario: You deposit $10,000 USDC targeting 3x leverage on a PT yielding 12% APY, with borrowing costs at 4%. FlashLeverage Process:
  1. Flash loan borrows $20,000 USDC instantly (no collateral needed initially)
  2. Your $10,000 + borrowed $20,000 = $30,000 total gets swapped to PT collateral
  3. The $30,000 PT position secures the $20,000 loan through Morpho
  4. Flash loan gets repaid automatically from the borrowed funds
Profit Math:
  • Total PT position: $30,000 earning 12% = $3,600 annual yield
  • Borrowing cost: $20,000 at 4% = $800 annual cost
  • Net profit: $3,600 - $800 = $2,800 annually
  • Return on your $10,000: 28% (vs 12% without leverage)
  • After 10% protocol fee on $1,800 profit: 26.2% final return
This single transaction achieves the same result as multiple manual loops while saving gas costs and eliminating execution risk between steps.