Steady investors often face a dilemma: how to ensure the safety of their principal while still earning decent returns? Here's a possible approach.

Use PT-USDe to collateralize on a mainstream DeFi lending platform, borrowing USD1 at an annual interest rate of only 1%. This rate is indeed low in the stablecoin lending market. Then, invest the borrowed USD1 into a stablecoin financial product that locks in about 20% annualized return. This way, the 20% return minus the 1% cost results in a net profit of over 19%.

What’s the clever part of this strategy? It has low risk exposure. You don’t need to hold highly volatile assets directly, nor worry about market downturns. It’s purely using assets as collateral and profiting from the interest rate spread. For investors who want to grow their assets but are reluctant to take on too much risk, this structured approach can be quite helpful.