Want to make your money work for you but worried about risks? Today, I’m sharing a relatively stable DeFi strategy that achieves over 19% annualized returns through arbitrage.

The core idea is simple: use your mainstream assets as collateral, borrow stablecoins to invest, and earn the interest spread.

How exactly does it work? First, use BTCB or ETH as collateral, then borrow stablecoins worth up to about 50% of the asset value on a certain DEX protocol. The borrowing cost is roughly 0.4%-1.2% annually — this is very important. Then, deposit these stablecoins into a top-tier exchange’s yield product, which currently offers about 20% annualized returns. Wait, you read that right — stablecoin yield farming.

Finally, do the math: borrowing cost at 1%, yield farming at 20%, the difference is your pure profit, straightforwardly over 19%. Plus, your collateral remains in your hands; if it appreciates, you profit from the increase, if it drops, you don’t lose — it’s like earning passively.

Want to go even further? Use certain yield-bearing stablecoins as collateral to continue borrowing, theoretically pushing the annualized return to over 25%.

Of course, you need to keep your risk defenses in place: keep the collateral ratio below 50%, closely monitor changes in lending spreads, and start with small amounts to test the waters. This strategy works because it’s backed by real protocol liquidity and a complete multi-chain ecosystem.