After hanging out in the crypto space for so long, I've lost track of all the pitfalls I've stepped into. My initial idea was pretty simple—just keep my coins on the exchange, mainly for convenience. Although the annualized interest was barely noticeable, I was constantly worried that the exchange might have issues.

Until a friend dragged me into the liquidity staking trap. Honestly, at first, I couldn't wrap my head around what staking or governance tokens were; it seemed too complicated and annoying. But recently, I took some free time to carefully analyze the entire logic, and I realized how much I had lost before.

Talking about stablecoins like USD1, many people think it's complicated, but the core idea isn't that brain-burning. The most eye-opening part for me was—asset utilization can really be maximized. Imagine holding BNB or other mainstream coins; usually, they just sit there like dead money. But with a different approach, you can stake these coins and, through collateral mechanisms, exchange for stablecoins to use. It's like mortgaging your house to the bank for cash, then renting out the house for income—your assets stay the same, but your returns can double.

I've been practicing this system for a few weeks, and its stability exceeded my expectations. Especially in the stablecoin lending part, the liquidation mechanism is quite user-friendly and doesn't frequently force liquidations. For someone like me who can't monitor the market daily, it's a lifesaver. The system runs automatically, and the risks are within controllable limits.

Honestly, if you're still struggling with how to preserve and increase the value of your coins, instead of listening to others boast, it's better to go through the entire process yourself. From my personal experience, this liquidity staking + stablecoin model is definitely more profitable than just leaving coins on an exchange.