Many people have been attracted by the 0.41% lending rate of that leading liquidity staking protocol. At first glance, it does seem a bit outrageous. To be honest, I initially suspected it might be a trap—who would really do such a loss-making deal? Later, after spending quite some time studying its operational mechanism, I realized that this logic is actually quite ingenious.

To run a successful lending platform, first and foremost, sufficient capital reserves are needed. This protocol is very clever; it pools a large amount of mainstream assets like BNB, ETH, and others from the community, forming a massive liquidity pool through liquidity staking. The larger the scale, the lower the cost per loan, which is exactly the same logic as traditional banks accepting deposits. Only with a large enough pool can it truly offer competitive interest rates to users.

Secondly, strict risk management is essential. This platform is quite selective about collateral assets, mainly accepting assets like BNB, ETH, which have strong consensus and relatively moderate volatility. This means the borrowed funds are backed by more reliable collateral, making the overall system risk more controllable. When risks are reduced, there is naturally room for interest rates to be adjusted downward. In fact, this is using strict risk control to safeguard the entire ecosystem.

Finally, the efficiency of product design itself is worth mentioning. The user experience on such platforms is very straightforward—features are focused, with no unnecessary flashy elements. This restrained design is actually an advantage; every step the user takes is clear and simple, eliminating the need to understand complex mechanisms. This simplicity and efficiency indirectly save users time and cognitive effort.