Compared to taking a BTCB arbitrage, the PT-USDe combined with USD1 strategy is like installing a dual-turbo performance beast. The core trick is simple: stacking profits upon profits.

First, PT-USDe offers the benefit of discounted convergence, roughly around 5%. Then, using the Lista protocol, you borrow USD1 at an ultra-high collateralization rate of 96.5%, with a borrowing cost of only 2.7% annualized. Next, you put the borrowed USD1 into the liquidity pool of a leading exchange, earning a steady 20% APY. As a result, multiple streams of income stack up to a 22%–23% compound annual return. It sounds complicated, but the logic is straightforward—use cheap money to earn expensive interest.

Let's break it down step by step:

**Step 1: Understanding the PT-USDe Discount**
Pendle's Principal Token represents the principal of 1 USDe, which can be redeemed 1:1 at maturity, so its trading price must be discounted. For the 9APR2026 tranche, the current trading price is $0.946, while the face value is $1.00, implying an annualized yield of about 5.5%. Simply put, you're buying at a 9.54% discount.

**Step 2: Lending leverage on Lista**
Lista allows you to use PT-USDe as collateral, with a collateralization ratio up to 96.5%. That means assets costing $0.946 can borrow $0.965 in USD1. The borrowing interest rate is only 2.7% annually, effectively borrowing money for free to do business.

**Step 3: Liquidity mining earnings**
The borrowed USD1 is put into a stablecoin pool on a top exchange, earning a continuous 20% annualized yield. When PT-USDe matures, the discount automatically disappears, and you’ve earned an additional 5.5% fixed return for free. If you then reinvest the USD1 earned from the exchange into the next PT tranche, the snowball effect is complete.

The beauty of this operation lies in its extremely low cost, ample leverage, and diversified income streams. As long as the stablecoin market remains stable, this multi-protocol arbitrage space will always exist.