Recently, while researching stablecoin investment strategies, I noticed a severely underestimated opportunity: borrowing USD1 at low cost and then investing in high-yield stablecoin products, with an astonishing spread in the middle.

It's simple to explain—borrow cheap money, move it to high-yield opportunities, and profit from the spread. It seems basic, but few actually execute it.

**Why can borrowing costs be so low?**

Using blue-chip assets (such as BTCB, ETH, BNB) as collateral to borrow USD1 stablecoins, the annualized interest rate can be pushed down to around 1%. This means your capital cost is almost negligible, while you gain liquidity in stablecoins that can be freely used. This is the true foundation of low-cost arbitrage.

**The practical approach isn't complicated**

Step 1: Collateralize blue-chip assets to borrow USD1, with a cost of about 1%.

Step 2: Invest the USD1 into stablecoin financial products, which currently offer an annualized yield of up to 20%.

Calculations: 20% yield minus 1% cost equals an 18% net profit margin. Without engaging in directional trading or high-volatility assets, this structure is quite stable.

**More interesting strategies**

If you already hold assets like PT-USDe, asUSDF, or USDe, which generate interest on their own, you can collateralize them to borrow USD1. Then, since the assets are still earning interest, and the borrowed USD1 is invested in stablecoins yielding 20%, your collateral continues to generate income. Essentially, one asset leverages three layers of returns—this is the real power of low borrowing costs.

**What is the core?**

Many focus only on the yield figures but overlook that capital costs are the other side of the equation. Lowering borrowing rates helps users improve asset efficiency: blue-chip assets don't need to be sold, liquidity can be reused, and the entire yield curve is elevated. This is what DeFi should be doing.

If you've been looking for low-risk, replicable, and logically clear stablecoin strategies, this combination is definitely worth serious consideration.