2026-01-09 10:25:17

Many people are optimistic that BNB can break through 2000U, and they are eager to chase the bull trend, but just can't take that step into contracts. To put it simply, derivatives are a double-edged sword — during a bull market, they can be very aggressive, with a 20% correction wiping out your account. Plus, the funding rate, which deducts 0.1% daily during a bull run, causes long-term holding costs to skyrocket.

If you want to earn returns without risking liquidation, there is a way. Recently, many big players have been using a spot leverage strategy — circular lending. The logic seems complex but the operation is actually quite simple.

Let's do a practical example. Suppose you hold 10 BNB:

**Step 1:** Deposit these 10 BNB and convert them into slisBNB tokens to lock them in.
**Step 2:** Use this collateral to borrow USD 1, say, 6,000 yuan.
**Step 3:** Use this 6,000U to buy BNB on an exchange, assuming 900U per BNB, you can buy about 6.6 BNB.
**Step 4:** Deposit the newly bought 6.6 BNB to earn yields.
**Step 5:** If you want to leverage further, borrow again and buy more, repeating the cycle.

How much do you actually earn? Your initial principal is only 10 BNB, but your on-chain position has expanded to 16.6 BNB. When BNB rises from 900U to 1500U, you benefit from the increase of 16.6 BNB, not just 10. Compared to derivatives' liquidation risks, this method is much safer.

Of course, returns are not free; borrowing incurs interest, but the overall cost is much lower than the funding rate of derivatives. That’s why this strategy is becoming increasingly popular in the DeFi community.

BNB3,88%

USD1-0,04%

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AirdropHunterXM

· 01-11 11:10

Revolving loans are indeed more comfortable than contracts, but if the interest eats too much, you still end up losing. I've played this logic before; the key is to find a platform with a reasonable interest rate, otherwise the borrowing costs will eat up half of the returns. If BNB really rises to 1500, I would have been financially free long ago. The problem is, what if it falls? Collateral value shrinks and you still need to add more. Contracts are essentially a gambler's game; at least with revolving loans, you can sleep better at night. It looks simple, but in practice, there are many pitfalls—slippage, borrowing rates, volatility risks, and more. DeFi is indeed more moderate than contracts, but it's not a guaranteed profit business either. This is an upgraded version of spot leverage; fundamentally, it's still a gamble on the price, so you need to keep a steady mindset. Borrowing costs are crucial; choosing the wrong platform can eat up a year's worth of gains, so careful calculation is necessary. Real big players are using this trick, but the premise is having enough capital to cushion the risks.

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CounterIndicator

· 01-11 05:04

The cycle loan system is indeed comfortable, with less of the anxious feeling that comes with contracts. Just worried that a sudden spike in borrowing interest rates might disrupt the rhythm.

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CoffeeOnChain

· 01-10 15:10

Revolving loans are indeed gentler than contracts, but oh my, interest compounded on interest—if you're not careful and borrow too aggressively, you'll still get爆。 If BNB really hits 1500, this strategy will seem smart. How to say it, it still depends on the market trend. Contract liquidation, revolving loan liquidation—it's a matter of choosing which hell. Borrow 6000 to buy 6.6 BNB—how is this math calculated? My brain can't keep up. Holding 16.6 positions sounds great, but the borrowing interest is deducted daily. Can it really outpace the funding rate? Isn't this just a spot version of going long? Just risk is virtualized. Collateral crashes, still爆. Don't fool yourself. It's so simple to say, but in real operation, leverage spirals upward, liquidation line is super close. I don't believe you.

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LiquidatedNotStirred

· 01-09 10:52

The concept of revolving loans sounds comfortable, but when the bear market hits and a sell-off occurs, the interest on borrowing can eat away half of your life. Holding ten coins and expanding to sixteen point six, it sounds good, but the liquidation price is also there. Don't be blinded by leverage. Funding rates are annoying as hell. Revolving loans at least save you this unnecessary expense, I have to admit. I'm really afraid of the operation where a 20% correction in the contract directly results in a complete wipeout. This strategy at least gives a chance to breathe. It feels like using borrowing rates to exchange for a more gentle death; still, it depends on the management level.

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MEVictim

· 01-09 10:50

Revolving loans are indeed much gentler than contract liquidations; just keep a close eye on the borrowing interest rates.

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ImpermanentPhilosopher

· 01-09 10:48

The so-called revolving credit is basically a contract with a different disguise; the risks are just as intense, but it's definitely much more glamorous than a liquidation nightmare.

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MEVSandwichVictim

· 01-09 10:34

The loop lending strategy sounds appealing, but are the risks really underestimated? I'm worried about contract liquidation, and even more worried about lending liquidation. Does anyone really make stable profits this way? Show me the account.

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NFTregretter

· 01-09 10:33

Revolving loans are indeed more attractive than contracts, but make sure to check the borrowing interest rate carefully and avoid being caught by hidden fees.

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