That's exactly what looping refers to. See my other comment for an idea of what these numbers probably look like. The interest rate usually varies based on ava

That's exactly what looping refers to. See my other comment for an idea of what these numbers probably look like. The interest rate usually varies based on available liquidity in the pool, so if they were borrowing 292M of stables, their interest rate could vary anywhere from 0.5-150% APY, depending on the protocol parameters and the available liquidity. Usually (negative) APY when borrowing stablecoins (edit: on ethereum) would be closer to 1%, but as you can imagine, when lots of people withdraw liquidity to engage in the same kinds of tactics, the overall liquidity available for borrowers decreases, and then the interest rate adjusts to incentivize depositers (who can sometimes have stablecoin (positive) interest rates of >100%. For reference, I deposited 200 USD of a stablecoin into a pool with low liquidity on a more niche lending protocol on a blockchain that is known for attracting people more inclined to leveraging, about 18 months ago, and I can withdraw 550 USD now based on the interest rate fluctuations (likely due to lots of people going long against the stables in that same period) Right now on Compound, one of the most popular (and safest) lending protocols, one can get 9% APR for supplying USDC (which I believe to be one of the safest stablecoins) As things turn around into more bearish territory, people will leverage the other direction and that interest rate will go down significantly (back to more like 1%) as people effectively short ETH and other tokens using the same mechanics (deposit a bunch of USDC, borrow a volatile crypto-asset, sell it for USDC, deposit more USDC, etc. Then if the price of that crypto-asset goes down significantly, you can repay your borrow balance at a fraction of the cost in USD terms)