Is it a pity to leave crypto assets idle? The combination of DeFi lending and traditional wealth management allows your assets to be "multi-purpose." Today, we'll break down a stablecoin arbitrage strategy—borrowing low-interest stablecoins, investing in high-yield financial products, and easily capturing the interest spread.

The arbitrage logic is straightforward: find a low-interest loan platform to borrow money, then deposit it into an account with higher interest rates. In the crypto world, it works like this—

First, on DeFi platforms like Lista DAO, use mainstream assets like BTCB and ETH as collateral to borrow native stablecoins USD1. What are the key figures? An annualized borrowing cost of only about 1%. Recently, the platform also optimized its interest rate model, capping the maximum borrowing rate at 30%, making it more friendly to borrowers.

Second, deposit the borrowed stablecoins into financial products on top-tier exchanges. These stablecoin yield products can offer annualized returns of around 20%. That’s where the profit margin lies.

Finally, do the math: 20% return - 1% borrowing cost = nearly 19% net profit. This is the locked interest spread.

How exactly to operate? Taking collateralized BTCB as an example, the process involves three steps—

Step one is to initiate a loan on the platform. Choose BTCB as collateral and borrow USD1. The system will provide the cost based on the current interest rate model. This step is basically completed in seconds.

Step two, transfer USD1 from your DeFi wallet to your exchange account. Pay attention to the blockchain network selection and transfer time, which usually takes a few minutes to tens of minutes.

Step three, purchase a financial product. Enter the wealth management section, select a stablecoin product, and allocate funds based on the 20% annualized expected return. Once the product is active, the earnings will automatically accrue interest.

The entire chain is connected: you are leveraging funds at a 1% cost to run a high-yield product with 20% returns. The main risks come from collateral price fluctuations (watch out for liquidation levels when BTCB and ETH fluctuate) and the security of the financial products themselves. Compared to simply holding coins or aggressive leverage, this strategy’s risk is much more moderate.