# Idle USD1 in Your Hands: How to Make It Work? Here Are 2 Ways from Lista DAO

How can you make idle USD1 work for you? This is actually a question without a standard answer. However, Lista DAO offers 2 approaches, each with its own merits—it really depends on what type of investor you are.

**Plan A: Steady Interest Arbitrage (Conservative Approach)**

This strategy is straightforward—money begets money.

How to do it: Collateralize mainstream assets like BTCB and ETH on Lista DAO at interest rates as low as ~1%. Then borrow USD1 and deposit it into a top-tier platform's financial product for 15-20% annual returns. With this two-way conversion, your net profit is the 14-19% interest spread in between. Sounds familiar, right? This is the classic arbitrage play in finance.

How much risk? Almost none. Your principal stays intact, returns are stable and predictable—perfect for those who don't want to watch their account balance swing wildly and just want guaranteed returns.

**Plan B: Asset Nesting with Yields (Aggressive Approach)**

This path is more complex but offers greater profit potential.

Core concept: If you already hold yield-bearing assets like PT-USDe or asUSDF, they're already earning you money, right? So why not use these assets as collateral to borrow USD1 and keep earning? This way, you preserve the underlying yields while stacking an additional arbitrage layer on top. It's maximizing capital efficiency to the extreme.

Of course, the trade-off is more operational steps and stronger mental resilience. Managing multiple assets and yield layers can get tedious.

**Key Principles for Both Paths:**

Keep your collateralization ratio controlled—don't get greedy. One market swing and liquidation notices come calling. Also, don't forget about Gas fees and other costs; sometimes when fees kick in, your returns aren't as pretty.

So, are you conservative or aggressive? Or do you already have your own system? See you in the comments—share your choice.