Seeing a 7% stable annualized return, many people's first reaction is "Is that all?" Indeed, in the fast-paced crypto world, a 4% RWA steady return can seem a bit pale. But for those who truly want to outperform the market, the issue isn't that the returns are too low, but that— they always feel it's not enough.

To the "yield hunters," the market they've long seen isn't just gentle growth. What they want is to seize the most substantial profit opportunities within a controllable (or at least perceived as controllable) risk framework. The leverage strategies of third-party treasuries are exactly such tools—annualized yields floating between 4% and 18%, with the highest exceeding four times the RWA strategy. Sounds indeed tempting.

But I must be blunt: these are like cars with the accelerator pressed—only speeding up, no slowing down. Mistakes in stepping on the pedal can lead straight to liquidation.

**What exactly is a third-party treasury?**

First, you need to understand what it really is.

Official standard products (like PSM, basic lending mechanisms) are akin to traditional bank wealth management—transparent, regulated, with relatively predictable risks. But third-party treasuries are a whole different ballgame. They are more like a "strategy marketplace" opened by a trading platform, allowing external professional teams (industry term: Curator) to list their own complex financial products. These teams have their own leverage schemes, arbitrage logic, and position management methods. In other words, you're not dealing with a standard system but entrusting your funds to a "private fund manager."

This distinction is crucial.

**The truth behind high returns**

An 18% annualized yield sounds attractive, but how is it achieved? Usually through a combination of these methods: borrowing stablecoins with leverage, earning spreads through trading pairs, utilizing liquidity mining rewards, or arbitraging during market inefficiencies at certain times. Each approach carries risks.

Leverage itself is a double-edged sword. When the market is smooth, 10x leverage can turn small gains into big ones. But once the market turns, the same leverage can directly eat into your principal up to the liquidation line. Moreover, these treasury strategies sometimes involve complex cross-chain operations or derivatives hedging, making the risk chain long and hard to predict.

Even more painfully, as a participant, you may not be able to see the treasury manager's actual positions, leverage multiples, or hedge ratios in real-time. All you see is a broad profit figure. It’s like riding in a car where you can't see the steering wheel—your sense of security is already lacking.

**How to choose between RWA and leverage strategies?**

Ultimately, it's a matter of risk preference. RWA (real assets) strategies offer a steady 4% because they are backed by tangible assets like real estate and bonds. They are less volatile, but their return ceiling is fixed.

Leverage strategies of treasuries? They can outperform RWA by several streets in a bull market, but in bear markets or during black swan events, you might face not just loss of gains but damage to your principal.

The most practical approach is diversification. Allocate part of your capital to leverage yields, while keeping another part in relatively stable schemes. This way, you won't miss out on market opportunities, and you won't be wiped out by a single leverage blow-up.

**Final words**

No financial product can give you both over 8% annualized returns and 100% principal safety at the same time. When you see floating yields of 18%, be mentally prepared— the leverage, derivatives positions, counterparty risks behind it, if any one of these links fails, your gains can evaporate instantly.

So before stepping on the accelerator of this "wealth booster," ask yourself: are you truly prepared for liquidation?