# Looping on Radiant Capital

## What is Looping?

The looping functionality from Radiant Capital enables users to enhance their collateral value by repeatedly executing the borrow and deposit process. This allows participants to leverage their collateral, potentially increasing the yield.

## How does Radpie pay its debt?

When users deposit their assets on Radpie, the platform's deposit composition rises, as does its debt (if there is leverage). Essentially, Radpie offers looping services to users while distributing RDNT rewards. When users withdraw their assets from Radpie, the protocol essentially "unloops" their portion of the pool, resulting in a decrease in deposit and repay proportional debt position.

## Radpie's receipt token

When users deposit their holdings into Radpie, they are issued a receipt token that represents their deposited assets. Through Radpie, users have the opportunity to earn RDNT rewards and also leverage their deposits to gain enhanced yield from Radiant Capital. It's important to note that the value of the underlying asset per receipt token will decrease. Users obtain a greater number of receipt tokens compared to the amount they deposit, as the value of each receipt token diminishes over time due to the accrual of borrowing interest. This is because the interest from borrowing is subtracted from the deposited amount.


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