Looking to earn some income with stablecoins? USD1 has recently become a popular choice for many. A leading exchange's simple financial product offers a fixed annualized return of 20%, which sounds quite attractive.

But there's a key point—how can you actually realize these gains? Not everyone has enough USD1 sitting in their account. That's where lending strategies come into play.

**The core idea is quite straightforward**: Use SolvBTC or xSolvBTC as collateral, borrow stablecoins from a DeFi lending protocol, then transfer them into financial products to earn yields. How exactly does this work?

First route: Use SolvBTC to borrow USD1 on a lending platform with an interest rate of about 5%, then directly invest in the financial product.

Second route: Be more flexible—use SolvBTC or xSolvBTC to borrow USDT (interest rate around 5%) or USDC (interest rate about 3.9%), then convert these into USD1 and deposit into the financial product.

**How is the yield calculated?** Currently, the trading price of USD1 and USDT is approximately 1.002, meaning USD1 has about a 0.2% premium. This implies that the 20% annualized return from the financial product effectively nets around 17.6%. After subtracting your borrowing cost of 5%, your net profit is about 12.6%. When valued in SolvBTC, considering a 50% collateralization ratio, the annualized yield is roughly 6.3%.

This arbitrage opportunity has a 30-day activity window, so the timeframe isn't very long. If you're interested, you should act quickly. The key factor is your SolvBTC position size—holding more allows you to borrow more stablecoins, increasing your absolute gains.