To be honest, when I first started exploring lending protocols, I was a bit apprehensive, worried that operations might be complicated or that I might get caught in a trap. Only after trying it did I realize that it's better to try yourself than to worry unnecessarily.

If you hold assets like BTCB, BNB, ETH that you plan to keep long-term, doing nothing with them is actually the biggest regret. These assets can be fully collateralized to borrow stablecoins at an ultra-low interest rate of around 1%. The key is that the borrowed funds are not left idle but are reinvested into the financial market, potentially earning around 20% annualized return. A simple calculation—pay 1% borrowing cost, while earning 20% from the investment, the difference is all yours.

The strategy can be further upgraded. For example, using assets that generate interest (like PT-USDe, asUSDF, USDe) as collateral to borrow stablecoins, creating a scenario where "the original assets continuously generate interest, and the borrowed funds also earn 20%", effectively making one principal work twice as hard. Coupled with participating in yield-bearing liquidity tokens in launch pools and airdrop activities, the returns can be even more diversified. It’s not just simple lending but an entire ecosystem that collectively absorbs profits.

However, when using these protocols, managing collateralization ratios must be done carefully. During market volatility, it’s essential to leave enough buffer space; otherwise, a price drop could trigger liquidation. The total locked value exceeding $4.3 billion shows that this approach is indeed being used by some, but its essence is not about getting rich overnight. Instead, it’s about maximizing the efficiency of on-chain funds. In the blockchain world, efficiency itself equals returns.