In the BNB chain lending ecosystem, there is a growing interest in a strategy—using ultra-low interest loans to leverage blue-chip assets, combined with financial products to achieve arbitrage gains.

The logic is actually quite straightforward. On the BNB chain, there is a lending protocol whose TVL once surpassed $4.3 billion, mainly serving holders of top assets like BTCB, ETH, and BNB. The core selling point is the approximately 1% lending rate—which is indeed rare in the entire DeFi market.

For example, with $10,000 worth of BTCB, after over-collateralization, you can borrow about $7,000 in USD1 stablecoins. The annual borrowing cost is only $70. It sounds negligible, but the question is—what can you do with this borrowed USD1? If you transfer it to a major exchange to participate in stablecoin yield farming, you can earn an annualized return of 13.5%-20%, which amounts to $945-$1,400 in annual income. Subtracting the $70 borrowing cost, the net yield is a solid 12.5%-18.9%.

The smartest part of this model is that the collateralized assets always remain in your account. If the price of BTCB rises, the gains belong to you. You earn yield from the borrowed funds while the original assets also benefit from market growth. It’s like generating double returns from a single asset.

The ecosystem stacking potential is even greater. If the collateral is BNB, it will generate liquid staking tokens. Users can enjoy staking rewards while these tokens can still be used for borrowing. Some exchanges also offer additional mining activities, points programs, or even project airdrops for holders. You’ll find that the profit model shifts from simple arbitrage to a three-layer stack of staking yield + yield farming spread + ecosystem rewards.

Risk management is also worth mentioning. These protocols adopt over-collateralization mechanisms, undergo multiple security audits, and their operations are fully verifiable on-chain. Collateralization, borrowing, and yield farming can all be completed with just a few clicks—no complex derivatives or leverage involved.

Of course, the ultimate returns still depend on market conditions and asset price fluctuations. But as an option for stablecoin yield farming, this low-cost borrowing plus yield farming layered approach indeed opens new avenues for those holding blue-chip assets but with low liquidity needs.