I recently received a bank call promoting consumer loans with an interest rate of 3.8%. I calculated carefully, and this number is incredibly out of line compared to on-chain lending.

Everyone knows the pain points of traditional finance—slow approval, complex procedures, high costs. But on decentralized lending protocols, the situation is completely different. Taking BNB as collateral, for example, you can get USD1 stablecoins in seconds, with interest rates that can be surprisingly low. In practice, from collateralization to receiving the funds, it usually only takes a few dozen seconds, and the entire process is transparent on the chain, with no human review involved.

What’s interesting here is the dual yield logic. On one hand, the low-interest stablecoins borrowed can be flexibly allocated—invested, used for market making, or other DeFi operations—to earn higher returns. On the other hand, BNB itself as collateral increases in value if the price rises. That means you can obtain liquidity at very low cost while also benefiting from the appreciation of your collateral.

Compared to this, why would anyone still endure the high interest rates and cumbersome procedures of traditional finance? On-chain lending truly changes the way individuals manage their finances. The key is to choose the right collateral assets and develop clear strategies, rather than blindly following trends. If you play this combination well, efficiency and returns are indeed in a different league.