Recently discovered an interesting operation: if you hold interest-bearing stablecoins like PT-USDe or USDe, you can achieve quite good compound returns through the lending market.

The core idea is simple—use the interest-bearing stablecoin as collateral, borrow USD1 stablecoins for investment. Let’s look at the numbers: holding PT-USDe itself yields a basic return of 5.54%, and by using it as collateral (with a collateralization ratio of up to 80%), you can borrow USD1 at a cost of 1.87%. Then, invest the USD1 into flexible financial products with an annualized return of around 20%.

To make it clearer with an example—100,000 PT-USDe can be used to borrow 80,000 USD1. Investing that 80,000 into a financial pool at 20% annualized return can earn 16,000 in a year. The cost to borrow USD1 is only 1,500 (80,000 × 1.87%), so the net profit from the spread is 10,500. Plus, the original PT-USDe generates a basic return of 5,540, totaling nearly 26,000 in income, with an overall annualized return exceeding 24%.

Why is this operation so low-risk? The reason is that the collateral itself is interest-bearing, so your assets are continuously generating cash flow and won’t stop growing due to arbitrage. Moreover, there’s no liquidation risk during the lending process—collateralization ratio is sufficiently safe, and the USD1 price is relatively stable. This approach is especially suitable for investors with idle funds who don’t want to take on too much risk, allowing their capital to truly work.

The key is that the entire process has almost no opportunity cost; every step of the capital is earning interest. Compared to traditional financial management or simply holding coins, this kind of compound return is indeed more efficient.