While much of crypto chases volatility, the most capital-efficient allocations of 2025 are hiding in plain sight: looping. These structured strategies quietly recycle billions through the same assets, transforming modest yield spreads into outsized, risk-adjusted returns. In essence, they are the on-chain counterpart to TradFi’s repo and carry trades, now enhanced by tokenized real-world assets. DeFi looping is a yield amplification mechanism built on correlated collateral and debt. The essence of looping is yield-bearing assets — tokens that grow in value over time. Institutions are bringing RWAs on-chain partly because looping can amplify returns with transparent, modelable risks and auditable parameters. Likely growth lanes include: Private credit vehicles, e.g., Hamilton Lane’s SCOPE, made available via Securitize with daily on-chain NAV delivered by RedStone, and on-demand redemptions, positioned for steady monthly yield per issuer materials. Cash-and-carry strategies like Spiko C&C, capturing predictable term premia. Reinsurance-linked securities, like MembersCap MCM Fund I, historically have been associated with low default rates and consistent payouts. Looping enables more efficient use of capital by turning yield-generating positions into repeatable, collateralizable instruments. The risk–return profile is similar to traditional fixed-income and money market desks, but here it is delivered with 24/7 liquidity, transparent collateralization metrics and automated position management. As tokenized RWAs scale, looping is poised to become a foundational building block in on-chain portfolio construction, further narrowing the gap between traditional and decentralized finance.