USD1 has recently launched a simple financial product on a leading exchange, offering a fixed annualized return of 20%. This yield has indeed attracted many people. But do you know? If you hold SolvBTC, you can explore even deeper profit mechanisms.

The operation is actually not complicated. SolvBTC holders can borrow USD1 from ListaDAO at an interest rate of about 5% annually. After borrowing, they can deposit directly into the simple financial product, earning an annualized 20%. This way, the 20% return minus the 5% interest cost results in a net yield of 15%.

There’s another route. Use SolvBTC or xSolvBTC to borrow USDT (about 5% annualized) or USDC (about 3.9% annualized) from Venus Protocol’s core pool, then exchange the borrowed funds into USD1 and deposit into the simple financial product. The advantage of this approach is the ability to choose a lower interest rate borrowing option.

Currently, the trading price of USD1 against USDT is around 1.002, with a premium of only 0.2%, so the actual annualized return is approximately 17.6%. After deducting an average borrowing cost of about 5%, you can reliably earn a net return of 12.6%. If measured in SolvBTC, considering a 50% collateralization ratio, this is equivalent to an annualized return of 6.3%.

Please note that this activity cycle lasts 30 days. Interested friends can test it early. As the year ends, it’s a good opportunity to add a buffer to your crypto assets.