The Details of Stablecoin Yield Activities—How to Fully Capture the Cycle Without Getting Cut

After a major exchange launched a 20% stablecoin activity, the premium/discount situation of this coin reversed quite noticeably. Previously, it was normally at a -0.1% discount; once the activity started, it turned into a positive premium. For those pursuing yields, price fluctuations directly cut into a chunk of profits.

There are two options. One is to follow the trend and sell early; the other is to borrow to hedge risks and hold from start to finish. Since borrowing is involved, why not also leverage DeFi protocols? Layered protocols can multiply yields significantly.

**Core Concept Breakdown**

Pendle’s PT-USDai currently has an annualized yield of 7.28%. This can be used as collateral in Morph, with a 1.1% annualized USDT loan—taking advantage of the price difference for an initial arbitrage opportunity.

Aster’s asUSDF has an annualized yield of 5.2%. When used as collateral on Lista, it can borrow USD1 at a 2.9% cost—adding another layer of leverage.

Finally, the highlight is the 20% flexible yield. Stacking these three layers creates a large potential for annualized returns.

**Practical Steps**

1. Buy PT-USDai on the Arbitrum chain
2. Collateralize in Morph and borrow 90% of USDT principal
3. Transfer USDT from Arbitrum to the exchange, then withdraw to BSC
4. Swap USDT for USDF on a DEX, then stake USDF to get asUSDF
5. Collateralize asUSDF on Lista and borrow 90% of USD1
6. Deposit USD1 directly into the 20% flexible yield product

**Risk Management Details**

Both sides’ lending health is solid. Morph and Lista’s liquidation line (LLTV) are both at 91.5%. Borrowing at 90% is relatively safe, with manageable liquidation risk.

Additionally—redeeming USDF for USDT incurs a 0.1% fee. However, during DEX swaps, you can often get USDF at a better price, making the premium enough to offset this fee.

**Final Words**

Adding more DeFi protocols increases project risk. The above strategy is purely for information sharing and does not constitute investment advice. Whether to proceed depends on your own risk tolerance.