Ember Loop: Leveraged Stablecoin Yield on Sui, Explained

Ember Loop is a JewelSwap Labs vault on Sui that earns leveraged stablecoin yield: you deposit USDC, the vault turns it into Ember's yield-bearing eEARN token, borrows more USDC against that eEARN on Suilend and buys more eEARN, up to a target of about 4.5x. You receive jeLOOP, a share token whose value follows the vault's net assets, and a JewelSwap keeper manages the loan for you.

It is a public beta, live since 11 October 2026, and the contract is unaudited. Leverage multiplies the gap between what eEARN earns and what borrowing USDC costs, and that gap can turn negative. This guide explains how Ember Loop works, where the yield comes from, how deposits and the queue-only withdrawals work, what the fees are, who controls the contract, and the risks, all based on the Ember Loop documentation.

What is Ember Loop?

Ember Loop is a single shared vault that runs one leveraged position on behalf of everyone who deposits. It sits in the Labs section of the JewelSwap Sui app, at the Ember Loop app page.

The idea is simple. eEARN is a stablecoin vault token that grows slowly in value. If you can borrow USDC more cheaply than eEARN earns, you can buy more eEARN with the borrowed money and earn the spread on a bigger position. That process of borrowing against a yield-bearing asset and reinvesting is called looping, which we cover in general terms in DeFi looping explained.

Doing this by hand means managing a loan and watching your health factor. Ember Loop does that inside a vault. You hold jeLOOP; the loan belongs to the vault, not to you. That makes it a kind of strategy vault, a pattern we explain in crypto vaults explained.

Who it is for, and who it is not for

Ember Loop may suit you if:

• you already hold USDC on Sui and want more than plain stablecoin lending pays, and you understand that the extra comes from leverage;
• you are comfortable with smart-contract risk on an unaudited beta, and only putting in an amount you can afford to lose;
• you don't need your money back instantly, and can wait for a withdrawal ticket to be funded.

It is not for you if:

• you need a stable, predictable dollar balance. jeLOOP's price moves and can fall;
• you want to choose your own leverage or manage the loan yourself. Everyone shares one position at about 4.5x;
• you are looking for something audited or low-risk. If you want simpler options, start with how to earn yield on stablecoins.

The building blocks: eEARN, Suilend and Current

Ember Loop combines outside protocols with its own contract, and each one is a separate place where something can go wrong.

Ember's eEARN

Ember Protocol is a vault platform incubated by Bluewater Labs, according to Ember's introduction. Its vaults issue receipt tokens. Per Ember's core concepts page, the receipt token balance stays the same while its exchange rate against the deposit coin rises as the strategy earns, and fees are baked into that rate. We cover the protocol in more depth in what is Ember Protocol.

eEARN is the receipt token of Ember's Ember Earn vault, which takes USDC. Ember's public vaults API describes it as running "stablecoin lending spreads, disciplined looping across bluechip protocols and delta-neutral yield and funding capture", with strategy accounts on both Sui and Ethereum. As of 12 October 2026, the same API showed:

• about $9.98 million deposited in Ember Earn;
• one eEARN priced at about 1.050 USDC;
• a target APY of 10%, which is Ember's target for eEARN, not a promise and not an Ember Loop figure;
• a withdrawal period of 3 days for redeeming eEARN back to USDC through Ember.

Ember's own FAQ says the APY shown on a vault is a target and that real yield may vary. That is the base of the whole trade: if eEARN earns less, Ember Loop earns less, multiplied.

Suilend, the main lender

The vault posts its eEARN as collateral on Suilend, a lending market on Sui, and borrows USDC against it. If you are new to Suilend, see what is Suilend and our step-by-step how to use Suilend. The Ember Loop app shows Suilend's live USDC borrow rate next to the position.

One detail from the docs matters for risk: Suilend values eEARN at $1, using the USDC price feed, not Ember's exchange rate. That means a markdown in eEARN's value doesn't on its own push the Suilend loan towards liquidation. The flip side is that, because eEARN's real rate is above $1, Suilend's books show the loan at a somewhat higher LTV than the vault's own accounting, and interest building on the debt is what pushes it towards the limit.

Current, the backup lender

The docs name Current (EmberMarket) as a second, backup lender. The vault can hold collateral and debt on either lender, and the keeper can move debt between them.

How Ember Loop works, step by step

The documentation lists five steps:

1. You deposit USDC and receive jeLOOP.
2. The vault buys eEARN from Ember with your USDC.
3. The eEARN becomes collateral on Suilend.
4. The vault borrows USDC against that collateral and uses it to buy more eEARN, which is added to the collateral.
5. Steps 3 and 4 repeat until the target leverage is reached. In practice the vault does this in one transaction with a flash loan, not in many rounds.

Your USDC doesn't go into the position the moment you deposit. It first sits in the vault as idle cash, and the keeper levers idle deposits into the position on its next run, every 10 minutes. Until then it counts towards the vault's value at full value.

Worked example: $1,000 at 4.5x

"4.5x leverage" means the vault holds $4.50 of eEARN for every $1 of depositors' money. Here is the docs' worked example:

Your $1,000 earns eEARN's yield on $4,500 and pays borrow interest on $3,500. Because deposits are pooled, these numbers describe your share of one shared position, not a separate loan in your name.

In practice the keeper targets about 77.5% LTV. The contract enforces a maximum LTV of 78% per lender today and never more than 81% under any settings. If you want a refresher on what LTV means, see crypto loan LTV explained.

The app shows three cards at 2x, 3x and 4.5x. The docs are clear that these are estimates to show how leverage changes the return. All deposits go into the same vault at about 4.5x, and picking a card doesn't change your position.

Where the yield comes from

The return is the gap between eEARN's yield and the USDC borrow rate, scaled by leverage. The docs give this formula:

Net yield ≈ (eEARN yield × leverage) − (borrow rate × (leverage − 1)) − fees

The table below is the docs' illustrative example with made-up round rates: eEARN earning 10% a year and USDC borrowing costing 8%. It is not a forecast and not the vault's actual return.

Leverage doesn't multiply the yield; it multiplies the spread. Going from 1x to 4.5x here lifts the return from 10% to 17% before fees, not to 45%, because you pay interest on 3.5 times your deposit.

Leverage also works in both directions. The docs' own counter-example: if eEARN's yield fell to 6% while borrowing still cost 8%, the 4.5x position would earn 27% − 28% = −1% a year. The more leverage, the faster you lose when borrowing costs more than eEARN earns. Borrow rates on lending markets move with utilisation, so the spread can shrink quickly.

The app's APY cards use live inputs: eEARN's recent yield and Suilend's on-chain USDC borrow rate. Its APY calculator also lets you include the entry and exit fees and how long you plan to hold, which matters for short holds. The app's estimates count only this spread; any incentive tokens the lender pays from time to time are not included, so treat the spread as the core return. For the difference between quoted rates, see APY vs APR.

jeLOOP and NAV: what you actually hold

jeLOOP is a normal Sui coin in your wallet. Its value is your share of the vault's net asset value (NAV), which the contract recalculates on every deposit and withdrawal. Per the docs, NAV is:

• idle USDC in the vault,
• plus eEARN collateral, valued at Ember's on-chain rate,
• plus USDC due back from Ember redemptions,
• minus USDC owed to the lenders,
• minus withdrawals already requested but not yet paid.

The jeLOOP price is NAV divided by total jeLOOP supply. The number of jeLOOP you hold doesn't change; the price of each one does. It rises when eEARN earns more than the borrowed USDC costs, and falls if eEARN loses value or borrowing becomes more expensive than eEARN's yield.

jeLOOP is not pegged to 1 USDC. New deposits get jeLOOP at the current price, and the price can sit above or below 1. In the app, the Value figure under Your position shows what your jeLOOP is worth in USDC right now.

The keeper, de-risk and the guardian

Ember Loop isn't a set-and-forget contract. An off-chain keeper, run by JewelSwap, does the active work. Per the docs, it runs every 10 minutes and:

• levers idle deposits into the position at about 77.5% LTV;
• funds the withdrawal queue by unwinding the right slice of the position;
• brings LTV back to 77.5% if interest pushes it above 78.5% (or down to 60% in de-risk mode);
• sends alerts when LTV reaches 80%, when de-risk or pause is on, when tickets wait over an hour, or when a step fails.

The contract limits what the keeper can do. It can't lever a position above the lender's maximum LTV, and a reduce can't leave the position at a higher LTV than before. It can never send vault funds to an arbitrary address. When it sells eEARN, the price must be within 1% of Ember's rate, and flash-loan fees are capped at 0.1%.

Automatic de-risk on an eEARN markdown

If Ember's on-chain rate shows eEARN losing value, the vault switches into de-risk mode by itself. New leverage can't be added until the admin reviews it. Reducing leverage and withdrawing keep working. It doesn't undo the markdown loss; it stops new exposure being added on top.

The guardian

A separate guardian key can pause the vault and switch on de-risk in an emergency. It can't unpause or move funds. While the vault is paused, deposits, withdrawal requests and new leverage stop, but reducing leverage and claiming already-funded tickets still work.

Deposits and the queue-only withdrawal

Deposits get jeLOOP at the current price, less a 0.45% entry fee that the app's estimate already includes. There is currently no deposit cap, though the admin can set one.

Every withdrawal is a queued request. There is no instant withdrawal, and that is enforced in the contract, not just hidden in the app. The flow has three steps:

1. Request. You choose how much jeLOOP to redeem. Your jeLOOP is burned and you get a WithdrawTicket. The USDC amount is fixed at that moment: the current jeLOOP price minus the 1% withdrawal fee. Price moves after that don't change what you're owed.
2. Processing. The keeper unwinds your slice of the position. Per the docs, a flash loan from NAVI repays part of the Suilend debt, the freed eEARN is sold on Bluefin, and the USDC is set aside for tickets in request order, first in, first out. The leverage of the rest of the position doesn't change. This usually takes 10–30 minutes.
3. Claim. When the ticket shows Ready to claim, you press Claim and receive the USDC. Claims keep working even if the vault is paused.

Why there is no instant withdrawal

Idle deposits are always levered into the position, so the vault never pays one person's exit with another person's new money. Each withdrawal is funded by unwinding exactly the slice it needs. Because your amount is locked when you request, the wait doesn't change what you receive.

The wait can be longer than 30 minutes. If the keeper stops, tickets wait. A very large withdrawal may need several keeper rounds. And if selling eEARN on Bluefin would cost more than 1% below Ember's rate, the contract refuses the sale and the ticket waits. Redeeming eEARN through Ember itself is not a fast fallback: Ember's API lists a 3-day withdrawal period for Ember Earn, and Ember's FAQ says withdrawals can take longer depending on the curator's strategy. Thin Bluefin liquidity in a busy market is therefore a real exit risk. Our guide to Bluefin covers the exchange side.

Fees, governance and keys

The three fees

Ember Loop charges three fees. The docs list current levels and the hard ceilings in the contract:

• Entry fee: 0.45% (ceiling 1%). It stays in the vault for existing holders. Its job is to stop "rate-step gaming": Ember updates eEARN's rate in steps, so someone could deposit just before an update and withdraw just after, taking about 0.45% from long-term holders at 4.5x. With this fee plus the withdrawal fee, that trade loses money.
• Withdrawal fee: 1% (ceiling 1%). It also stays in the vault. To pay you, the keeper sells roughly 4.5 times your amount in eEARN, which costs about 0.2–0.4% of what it sells, or roughly 1–1.8% of your withdrawal. The fee means the holders who stay aren't charged for your exit.
• Performance fee: 10% of gains (ceiling 20%). It is charged only above the jeLOOP price high-water mark, by minting new jeLOOP. If the price falls and then recovers, no fee is charged on the recovery back to the previous peak.

On top of these, Ember's own fees are already reflected in eEARN's exchange rate, according to Ember's core concepts page.

Entering and leaving costs about 1.45% in total, which can exceed what the vault earns over a short hold.

Only JewelSwap's 3-of-5 multisig can change fees and parameters, and only within the hard ceilings. Since package v5, those changes apply immediately: there is no timelock. So there is no on-chain advance notice of a fee change, though the ceilings always apply.

Who holds the keys

The docs list four roles:

• Admin: sets parameters within the ceilings, pauses and unpauses, clears de-risk, issues keeper and guardian keys and sets the fee recipient. Held by JewelSwap's 3-of-5 multisig.
• Package upgrade: can upgrade the Move code. Held by the same 3-of-5 multisig.
• Keeper: levers, reduces, funds the queue and harvests, within on-chain limits. A single key on a JewelSwap operations wallet.
• Guardian: emergency brake only. A single key on the same operations wallet.

Admin and upgrade rights moved to the multisig on 10 October 2026, per the docs. A 3-of-5 multisig means three separate signers must approve any admin action; see what is a multisig wallet. It doesn't remove trust: the upgrade holders can change the code, and the docs note that keeper and guardian keys issued by the admin can't be revoked. Contract addresses are listed in the docs.

Risks

These are the risks the docs list, in plain terms:

• Unaudited beta contract. The code hasn't been externally audited. Bugs could cause loss of funds. Ember says its own protocol was audited by OtterSec, per its FAQ, but that doesn't cover Ember Loop's code.
• Leverage magnifies losses. At 4.5x, a 1% drop in eEARN's value takes roughly 4.5% off the jeLOOP price.
• eEARN strategy and markdown risk. eEARN's yield comes from Ember's strategies, which span lending, looping and delta-neutral positions across chains. That yield can fall or turn negative, and eEARN can be marked down.
• Borrow-rate spikes. If USDC borrowing costs more than eEARN earns, the vault loses money every day, and leverage multiplies the loss.
• Liquidation. If the debt grows too large relative to the collateral, the lender can liquidate part of the position at a penalty. See DeFi loan liquidations explained.
• A three-protocol stack. The vault depends on Suilend, Current, Ember and the Pyth USDC price feed all working, plus NAVI flash loans and Bluefin liquidity for exits. A failure in any of them can hurt the vault.
• Keeper dependence. If the keeper stops, idle deposits stay unlevered, the position isn't rebalanced and withdrawal tickets wait.
• Exit liquidity and Ember's withdrawal delay. Exits rely on selling eEARN on Bluefin within 1% of Ember's rate; redeeming through Ember takes days. A large or crowded exit could leave tickets waiting.
• Key holders. Admin and upgrade rights sit with a 3-of-5 multisig, parameter changes have no timelock, and the keeper and guardian are single keys.

For a general checklist before using any protocol, see how to check a DeFi protocol is safe.

How to use Ember Loop, step by step

1. Get USDC on Sui and a little SUI for gas, in a Sui wallet. Our Sui wallet guide covers the options.
2. Open the Ember Loop app and connect your wallet.
3. Read the rate cards. Check the live estimates at 2x, 3x and 4.5x and the current lender borrow rates. Use the APY calculator with your planned holding period and fees included.
4. Deposit. On the Deposit tab, enter a USDC amount, check the estimated jeLOOP and press Deposit, then approve in your wallet. The app waits for on-chain confirmation before showing success.
5. Check your Value. Under Your position, Value shows your jeLOOP in USDC terms. Expect the keeper to lever your deposit within about 10 minutes.
6. Request a withdrawal. On the Withdraw tab, enter how much jeLOOP to redeem and press Request withdrawal. Your ticket appears under Your position, with the USDC you'll get, the locked price, how much is queued ahead of you and a funding progress bar.
7. Claim. When the ticket shows Ready to claim, press Claim to receive the USDC.

Is Ember Loop right for you?

Ask yourself four questions.

• Do you understand where the return comes from? It is the eEARN-versus-borrow spread times about 4.5, minus fees. If you can't explain how it turns negative, don't deposit.
• Can you afford to lose this amount? It is an unaudited beta built on three other protocols. Size it accordingly.
• How long will you hold? Around 1.45% of entry and exit fees means very short holds are likely to lose money.
• Is plain eEARN or unlevered lending enough? At 1x you avoid borrow-rate and liquidation risk, at the cost of a lower return. Our yield-generating stablecoins explainer and Sui lending protocols compared cover simpler routes.

If you try it, start small and read the docs in full first.

Frequently asked questions

What is Ember Loop?

Ember Loop is a JewelSwap Labs vault on Sui. You deposit USDC and receive jeLOOP. The vault buys Ember's eEARN, posts it as collateral on Suilend, borrows USDC and buys more eEARN, targeting about 4.5x leverage. It is an unaudited public beta.

What APY does Ember Loop pay?

There is no fixed rate. The return is roughly eEARN's yield times leverage, minus the borrow rate times leverage minus one, minus fees. The app shows live estimates based on current rates; they are not promises, and the spread can turn negative.

Is jeLOOP worth exactly 1 USDC?

No. jeLOOP is a share of the vault, so its price moves with the vault's net asset value. The Value figure under Your position shows what your jeLOOP is worth in USDC.

How long does a withdrawal take?

Usually 10 to 30 minutes. You request a withdrawal, which burns your jeLOOP and locks your USDC amount in a ticket. The keeper runs every 10 minutes and funds tickets in order. Large withdrawals, thin Bluefin liquidity or a stopped keeper can make it take longer.

What are Ember Loop's fees?

A 0.45% entry fee, a 1% withdrawal fee and a 10% performance fee above the high-water mark. The contract caps them at 1%, 1% and 20%. Only JewelSwap's 3-of-5 multisig can change them, and changes apply immediately with no timelock.

Do I need to watch my health factor?

No. The loan belongs to the vault, and the keeper manages leverage within on-chain limits. You still carry the risk: if the position loses value or is partly liquidated, the jeLOOP price falls.

Can I lose money with Ember Loop?

Yes. If eEARN loses value, if borrowing costs more than eEARN earns, in a liquidation, or through a bug in the unaudited contract, you can lose money, and leverage makes losses bigger.

Keep reading

• What is Ember Protocol?
• DeFi looping explained
• How to use Suilend
• Crypto vaults explained
• Health factor in DeFi lending

Disclaimer: this article is educational and not financial advice. Ember Loop is an unaudited beta; only deposit what you can afford to lose. Ember Loop mechanics are as described in the JewelSwap documentation on 12 October 2026; eEARN figures are from Ember's public vaults API as of 12 October 2026. The yield table uses the documentation's made-up illustrative rates, not forecasts.