There is an old saying in the crypto world—bear markets earn coins, bull markets make money. Applied to USD stablecoin lending arbitrage, this logic can be translated as: volatile markets most expose true levels, while also hiding the easiest opportunities to make profits.

Most people panic when they see collateral prices drop. Especially when your staked BNB keeps falling, the psychological pressure can be quite intense. But there’s an overlooked point— for those who manage their positions well in lending arbitrage, a decline isn’t necessarily a bad thing.

Why? Think about what your "main income" is—interest rate spreads. This part of the profit generally doesn’t disappear just because prices fall; the interest you earn remains intact. Conversely, when prices drop, you have the opportunity to buy cheaper BNB with the same amount of money to add to your position. These newly purchased cheap assets, used as collateral, instantly lower your average holding cost, increasing the safety margin of your entire position. This is similar to dollar-cost averaging in the stock market—buy more as prices fall, lowering your average cost.

There’s also a hidden mechanism. During sharp market fluctuations, the original supply and demand balance often breaks down. For example, panic spreads, and everyone becomes hesitant to lend assets, causing borrowing rates to plummet; at the same time, to attract liquidity back, the APY of mining reward pools is increased. As interest rates decrease while rewards go up, the "space" for arbitrage widens instantly. This is the opportunity hidden within crises. Of course, the premise is that you have spare funds and a steady mindset, able to stick to your plan when others are in fear.

The key is not to focus solely on collateral price movements. You should look at the interest rate curve, reward data, and analyze microstructural changes in the market. When the market is stable, arbitrage is a slow and steady process; when volatility arises, arbitrage becomes both a test and an opportunity. The real dividing line is—can your position withstand the waves, and can your mindset stay calm? When you stop being driven by market ups and downs and learn to use rules and volatility to serve yourself, you’ve truly entered the game.