When market fluctuations are unpredictable, many people want to find a method that is both stable and profitable. The crypto market actually offers such opportunities—stabilizing value through lending interest rate spreads.

Recently, I noticed a good lending and liquidity staking protocol on BNB Chain. Its native stablecoin lending costs are ridiculously low—often below 1% annualized. In contrast, some leading exchange's financial products can offer stablecoin yields of 5%-15% (depending on region and product), making the interest rate spread quite substantial. After deducting on-chain operation and transfer costs, the net profit can still land in your pocket.

**How to operate? Simply put, in two steps:**

**Step 1: Prepare Collateral**

To borrow USD1 on this protocol, you need over-collateralization. Blue-chip assets like BNB, BTCB, ETH, stBNB are all acceptable. The most important thing is to store them in a wallet supporting the relevant chain—MetaMask, Trust Wallet, etc. If your assets are scattered across different places, consolidate them first.

**Step 2: Execute Lending and Investment**

Over-collateralize your assets on the protocol, then borrow USD1 at an extremely low interest rate. After borrowing, withdraw to an exchange, choose a flexible or fixed-term financial product, deposit the money, and start earning interest.

**How to calculate returns?**

Suppose your borrowing cost on the protocol is 0.8% annualized, and the exchange's financial product offers 8%. The difference between these two is your net profit margin. Subtracting a small fee for on-chain interactions and cross-chain transfers (usually within 0.5%), the final annualized yield is approximately 6%-7%. This return is quite good for stablecoin investments.

**Where are the risks?**

Mainly focus on two aspects. First, the collateral price—if BNB or ETH assets drop significantly, it may trigger liquidation. Second, interest rate fluctuations—lending rates and financial yields can change, they are not fixed. Therefore, this strategy is most suitable for those who are optimistic about the mid-term trend of collateral assets and can tolerate some volatility.

**Practical tips:**

Don’t set the collateral ratio too tight; leave enough buffer space. Monitoring liquidation risk is top priority—set up alerts and regularly check your collateral ratio. Also, yields on financial products fluctuate; compare several options when choosing, don’t just stick to one. When transferring in and out, consider network congestion and gas fees.

This approach is essentially a classic low-cost financing and high-yield allocation strategy. During market volatility, it’s much more reassuring than simply holding coins or stacking stablecoins. If you have idle blue-chip assets, give it a try.