When I first entered the DeFi space, I was both curious and hesitant about arbitrage. I always thought it was a大神级别的操作 that only experts could handle, and that普通人 like me couldn't play around with it. It wasn't until I actually took the plunge and tried it myself that I realized—it's not that mysterious. Once the logic clicks, just take it step by step.
The first thing is to do thorough preparation; you can't be lazy here. Make sure your wallet supports Binance Smart Chain (BSC). I used MetaMask to configure the BSC network. Keep some BNB in your wallet for Gas fees—just enough to cover a few transactions. Then transfer assets like BTCB or ETH that need to be collateralized from your exchange to your wallet—here, you must pay special attention: be sure to select the BSC network; sending on the wrong chain would be disastrous.
Once prepared, head straight to the official website of a leading DeFi lending protocol, connect your wallet and authorize it. Find the BTCB vault in the lending market. I have a small habit: keep the collateralization ratio below 50%. Why? Risk management. Price fluctuations are normal; leaving enough buffer ensures peace of mind. Otherwise, a price drop could lead to liquidation. Confirm the transaction, and the collateral is locked in.
Next is borrowing USD1, which is the key step in the entire process. Enter the borrowing amount on the vault page, and you'll find the annual interest rate surprisingly low. After confirming in a few seconds, USD1 will arrive in your wallet. Immediately transfer it to a leading exchange and use the spot trading section to buy flexible or fixed-term financial products with full leverage.
At this point, the entire closed loop is complete: pay a small amount of interest, earn passive income from financial products. Borrow at low interest, deposit at high interest, and the difference is your profit. It looks simple, but in reality, it requires meticulous operation and a healthy respect for risk.
The biggest takeaway from this practical experience is: patience, carefulness, and respect for risk are more effective than any complex formula. DeFi arbitrage is not some black magic; beginners shouldn't be afraid. Follow the logic, proceed steadily, and you'll be able to grasp the returns.
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LayerZeroJunkie
· 01-10 23:04
50% collateralization rate is amazing, really a guarantee of sleep quality.
Wow, that part about switching chains really hit me, the kind of pain I've experienced firsthand.
The logic of buying low and selling high is quite clear, but execution requires steady hands.
DeFi arbitrage, to put it simply, still requires patience; you can't be too greedy.
Beginners are indeed easily scared; it's actually not as complicated as it seems.
Why am I increasingly unable to understand the price difference model? Feels like the market is changing.
This logic was useful two years ago, but now the interest rate spreads have compressed quite a bit.
The phrase "respect for risk" should be engraved in your mind; don't just think about earning passively.
Configuring MetaMask doesn't seem difficult, mainly avoid operational mistakes.
How do you choose collateral? Do you have any preferences?
View OriginalReply0
EntryPositionAnalyst
· 01-10 08:51
A 50% collateralization rate is indeed stable, but it depends on how the market reacts; sometimes you need to be more conservative.
The time I transferred to the wrong chain almost drove me crazy; now I have to read three times before I dare to confirm.
Borrow at low interest and deposit at high interest sounds simple, but the key is to be patient and not make reckless moves. This is the biggest test.
It's really just a math problem; don't overthink it. Follow the steps carefully, and you'll be fine.
Your insights are good, but I'm worried that beginners might still be reckless after hearing this. Risk awareness is truly the most valuable.
View OriginalReply0
PumpAnalyst
· 01-10 08:47
In simple terms, it's about buying low and selling high, but this time the profit comes from the interest rate difference. Good risk control is the key; I approve of a 50% collateralization ratio. Only the timid can survive longer.
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It sounds easy, but when the price of the coin really plunges, you'll understand what liquidation anxiety is. Attention, beginners: this is not a get-rich-quick scheme. You must keep an eye on the liquidation price at all times.
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Borrowing stablecoins like USD1 is indeed ridiculously low-interest, but I'm more concerned about whether this protocol itself is reliable. Have you checked the project's audit report? Don't get caught in the end by the manipulators.
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It's got some merit, but the question is whether this tactic can still be used when newcomers enter later. It seems there are too many people doing arbitrage in DeFi now, and the interest spread has long been squeezed out.
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A collateralization ratio below 50% shows good risk awareness. But honestly, the real money makers are those who dare to leverage high, even if they die quickly.
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Low-level mistakes like chain transfers are indeed easy to make, but if you encounter some unscrupulous exchanges freezing withdrawals, preparation won't save you.
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It looks like a very stable strategy, but how much can the annualized return reach? If it's less than 20%, I think there's no need to bother so much. Just regularly deposit in an exchange; it's simpler.
View OriginalReply0
GasFeeSurvivor
· 01-10 08:46
50% collateralization rate is indeed stable, but the real test is still the psychological readiness at that moment.
Speaking of people transferring to the wrong chain, I've seen too many cases, and each time it ends with a reckless move.
USD1 arbitrage isn't as high a threshold as you might think.
Wait, can your investment returns really cover the borrowing interest? What about the details?
In fact, risk management is written quite practically, much more than those who hype up getting rich quickly.
For DeFi beginners, listening to this is more useful than reading ten tutorials.
Which is the low-interest product, and how much can it be leveraged to?
It feels like a bargain, but with so many people watching the market, is the opportunity really that good?
When I first entered the DeFi space, I was both curious and hesitant about arbitrage. I always thought it was a大神级别的操作 that only experts could handle, and that普通人 like me couldn't play around with it. It wasn't until I actually took the plunge and tried it myself that I realized—it's not that mysterious. Once the logic clicks, just take it step by step.
The first thing is to do thorough preparation; you can't be lazy here. Make sure your wallet supports Binance Smart Chain (BSC). I used MetaMask to configure the BSC network. Keep some BNB in your wallet for Gas fees—just enough to cover a few transactions. Then transfer assets like BTCB or ETH that need to be collateralized from your exchange to your wallet—here, you must pay special attention: be sure to select the BSC network; sending on the wrong chain would be disastrous.
Once prepared, head straight to the official website of a leading DeFi lending protocol, connect your wallet and authorize it. Find the BTCB vault in the lending market. I have a small habit: keep the collateralization ratio below 50%. Why? Risk management. Price fluctuations are normal; leaving enough buffer ensures peace of mind. Otherwise, a price drop could lead to liquidation. Confirm the transaction, and the collateral is locked in.
Next is borrowing USD1, which is the key step in the entire process. Enter the borrowing amount on the vault page, and you'll find the annual interest rate surprisingly low. After confirming in a few seconds, USD1 will arrive in your wallet. Immediately transfer it to a leading exchange and use the spot trading section to buy flexible or fixed-term financial products with full leverage.
At this point, the entire closed loop is complete: pay a small amount of interest, earn passive income from financial products. Borrow at low interest, deposit at high interest, and the difference is your profit. It looks simple, but in reality, it requires meticulous operation and a healthy respect for risk.
The biggest takeaway from this practical experience is: patience, carefulness, and respect for risk are more effective than any complex formula. DeFi arbitrage is not some black magic; beginners shouldn't be afraid. Follow the logic, proceed steadily, and you'll be able to grasp the returns.