How to use your idle USD1 to make money? This is actually a question without a standard answer. However, Lista DAO offers two approaches, each with its own reasoning, depending on what kind of investor you are.

**Option A: Earn interest steadily (the conservative choice)**

This strategy is simple—make your money work for you.

How it works: collateralize mainstream assets like BTCB and ETH on Lista DAO, with interest rates as low as around 1%. Then, lend out USD1 and deposit it into a top-tier platform’s financial product, which can yield an annualized return of 15-20%. By flipping the process, your net profit is the 14-19% interest rate difference. Sounds familiar? This is the classic arbitrage play in finance.

How risky is it? Almost none. Your principal remains untouched, and the returns are stable and predictable, making it especially suitable for those who don’t want to watch their account numbers fluctuate and prefer certainty.

**Option B: Asset nesting for interest (the aggressive approach)**

This path is a bit more complex but offers greater potential returns.

The core idea is: if you already hold interest-bearing assets like PT-USDe or asUSDF, which are earning you money, why not use these assets as collateral to borrow USD1 and continue earning? This way, you retain the underlying yield while adding an extra layer of arbitrage income. Multiple gains in one shot—that’s the ultimate efficiency of capital use.

Of course, this requires more steps and a stronger psychological resilience. Since it involves multiple assets and interest layers, management can be more cumbersome.

**Remember these bottom lines for both approaches:**

Collateralization ratios must be controlled; don’t be too greedy. Otherwise, market fluctuations could lead to liquidation notices coming too late. Also, don’t forget the costs like Gas fees—sometimes, once these costs are deducted, the returns may not look as attractive.

So, are you a conservative or an aggressive investor? Or do you already have your own set of strategies? Share your choice in the comments.