Still exploring how to make steady profits with DeFi? Actually, there's a clear approach—using on-chain low-interest environmentally friendly loans to borrow USD1, then transferring it into a leading exchange's financial product to capture the interest spread. It sounds complicated, but the actual process is just three steps.

**Step 1: Find Good Collateral**

In lending protocols like Lista DAO, choose mainstream assets such as BTCB, ETH, BNB for collateral. Why choose these? They have relatively moderate volatility, controllable risk, and are reputable blue-chip collateral assets.

**Step 2: Borrow at Low Cost**

This is the key. Currently, you can borrow USD1 at an annualized interest rate of about 1%—yes, it's that cheap. But don't be greedy and borrow the maximum; it's recommended that the collateralization ratio not be below 200% to leave room for price drops. Liquidation risk is the biggest pitfall in this game.

**Step 3: Deposit into High-Yield Products**

Transfer the borrowed USD1 to a leading exchange and put it into their financial products. The annualized yield can reach around 20%. Do the math: earn 20%, pay 1% cost, netting 19%. Sounds good, right? Of course, don't forget that on-chain gas fees will eat into some of the profits.

**Advanced Play: Asset Yield Stacking**

If you already hold tokens like PT-USDe or asUSDF that generate yields, the strategy becomes even more elegant. No need to sell them; directly collateralize to borrow USD1. This way, your existing yield income continues to grow, and the newly borrowed USD1 can be used for arbitrage, earning double the benefits simultaneously.

**Real-World Reminder**

Interest rates change, and that 19% interest spread isn't locked forever. When market sentiment shifts, borrowing rates may rise, and financial yields may decline, compressing the spread. Additionally, a drop in collateral value is your biggest enemy, potentially triggering liquidation. So, a high collateralization ratio isn't about greed but about survival.

In essence, this is a game of arbitrage between on-chain and centralized exchanges. Market imperfections give us opportunities. Ready to get started? Or have you already tried? Share your real experiences in the comments.