# How LETH works

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Example:

1. A whitelisted user deposits 200 ETH and receives \~200 newly-minted *LETH* in return, minus the gas & execution fees to execute the transaction.
2. Slippage & execution fees are included in the price when **minting** & **redeeming**. loopedETH earns no profit from the **minting** or **redeeming of** *LETH*.
3. The Risk Curator oversees [AutoLoop](https://docs.loopedhype.com/technical-architecture/autoloop), which stakes the underlying ETH into a Liquid Staking Protocol (i.e Liquid Collective), receives lsETH, then supplies it to a decentralized lending protocol, borrows ETH against lsETH, and stakes ETH again. This strategy is recursively executed up to 15x.
4. The Risk Curator calibrates [AutoLoop](https://docs.loopedhype.com/technical-architecture/autoloop) to rebalance the position daily. Based on the current market conditions, the multiplier is adjusted for the most efficient and safest looping strategy.&#x20;

→ Learn more about AutoLoop

→ Read LETH's Security & Risk Framework &#x20;

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