Want to optimize your asset allocation? Today, let's talk about a pretty interesting DeFi strategy—arbitrage through interest rate differentials using lending protocols.

The core logic isn't complicated. You use mainstream assets like ETH, BTC, or BNB as collateral, borrow stablecoins at very low costs, and then invest in high-yield products. The interest rate difference between these steps is your profit.

Specifically, using ETH as collateral costs about 1% for borrowing, then converting the stablecoins into certain financial products that can yield over 10% annualized return. With a 20 percentage point interest rate spread, there's an arbitrage opportunity.

Why can this be achieved with such low lending rates? The key lies in the protocol design. Combining liquidity staking and lending functions boosts capital efficiency significantly. As an important entry point into the on-chain stablecoin ecosystem, it gathers enough liquidity to naturally lower costs.

BTCB and BNB operate on the same logic. These major coins have stable market caps and good liquidity, making them ideal collateral. The choice depends mainly on your own asset allocation preferences.

But don't think it's that simple. To truly profit from this interest rate spread, you need to: 1) monitor interest rate changes in real-time, 2) select the right financial products on the receiving end, and 3) not overlook hidden costs like gas fees and slippage.

The project itself is backed by many large institutions, and the development team is continuously iterating on the product. The ecosystem is expanding, with new features constantly being launched, offering users more interaction options. Security is also handled meticulously, with strict controls from smart contracts to operational layers.

In summary, this is a strategy worth researching. But remember, DeFi yields always come with risks—do what you can afford.