A critical factor obstructing structural resilience is residual deformation after a damaging event. The search for a solution for removing residual deformation has led to the consideration of Shape Memory Alloys (SMAs) that can undergo large deformations and return to their original undeformed shape. This study focuses on an innovative hybrid yielding steel-SMA damper that uses monofilament wire loops. Because of numerous design parameters that affect the performance of this hybrid damper, this research aims to carry out a parametric study to optimize the damper’s performance. The study was conducted at the device level as well as a structural level. At the device level, the key design parameters, including SMA to steel ratio, max imposed strain, and the length of the elements, were evaluated. At the same time, the damper’s effect on the seismic performance of low, mid, and high-rise structures was investigated at the structural-level study. In the end, the results showed that using the damper in strong ground motions successfully reduced the maximum residual drift up to 71%, 97%, and 92% for low, mid, and high-rise structures, respectively. Therefore, it was concluded that the damper could add the self-centering ability to hysteretic dampers while maintaining satisfactory energy dissipation performance. Furthermore, some of the advantages claimed by the developers, including versatility in design and performance, adequate load resistance, and stable behavior, were also confirmed in this study.