DeFi lending has always had an old problem—borrowers pay interest, liquidity providers earn fees, and both sides have their own frustrations. But recently, Lista DAO has come up with something different called the smart lending model, which flips this problem on its head.

The core idea isn't complicated: when you collateralize assets (BTCB, slisBNB, or BNB) to borrow USD1 or BNB, Lista DAO automatically deposits your collateral into their own DEX liquidity pool. The collateral serves as loan security on one hand, and on the other hand, it earns trading fees in the pool. It's like your assets are working two jobs—this is what they call "negative cost financing."

Looking at the numbers makes it clear: the interest rate for borrowing USD1 is only 0.03%, compared to over 1% on regular lending protocols, and some leading platforms charge up to 6.4% for USD1. Meanwhile, the collateral in the DEX pool can generate 0.1% fee income, which covers the interest cost and nets you an additional 0.07%. In the future, fee income is expected to reach 5-6%, making it even more cost-effective.

From a technical perspective, operations like collateralization, borrowing, and liquidation are all automatically executed on-chain, with no middlemen able to cheat. Once the system detects that the collateralization ratio falls below the warning line, it automatically triggers liquidation, fundamentally avoiding bad debt issues. This mechanism allows both high-risk and low-risk users to find their suitable positions—borrowers save costs, depositors receive stable dividends.

With this design, Lista DAO has already become one of the most competitive LSDFi protocols on the BNB Chain.