This method is built on top of the battle-tested TokenSets protocol, and improves upon the well-known IndexCoop FLI 2x series. Using collateralized debt from lending protocol such as Aave and Compound, Zoo innovates to achieve 3x leverage through multiple borrowings. As we know, when the Loan-to-Value (LTV) ratio is at 80%, borrowing once will only yield 1.8x leverage. To get higher leverage, Zoo utilizes recursive borrowing to repeat the cycle of deposit-borrowing-buying-redeposit until targeted 3x leverage is reached. The highest leverage achievable is calculated by 1 / (1-LTV). Hence, with 80% LTV the maximum leverage using our approach is 1 / (1 - 80%) = 5x.