Looking to earn stable returns in DeFi? The key is to understand the risks. Taking the USD1 collateralized lending strategy as an example, it looks good, but you must not jump in blindly.

First, there's the issue of collateral price volatility. This needs to be taken seriously—it's recommended that the collateralization ratio not exceed 70%. If the market experiences sharp fluctuations, warning signs of undervaluation can appear at any time, and forced liquidation can be costly.

Second, the platform's financial returns are not fixed. The official may adjust them based on market conditions, so it's important to regularly check announcements and make timely adjustments to your configuration.

Don't overlook the risk of smart contracts either. When choosing a platform, make sure it has undergone professional audits—platforms certified by multiple auditing firms tend to have higher security levels. Also, although current interest rates are stable around 1%, there may be adjustments in the future.

Operational tips? Don't go all-in right away. Start with small amounts to test the waters, diversify your asset allocation, and regularly check the collateralization ratio and platform updates. Overall, this type of strategy is relatively controllable in terms of risk, with stable returns, making it especially suitable for investors who don't want to worry too much but still want their assets to grow.