I recently discovered an interesting arbitrage opportunity. Using Lista DAO to borrow USD1 on the BNB Chain costs about 1.87% APY, while depositing into a major exchange's Earn product can yield an annualized return of 20% APY. The difference between the two is over 18% pure profit margin. Sounds great? Hold on, the details are the key.

Let's look at the numbers first. The 20% APY promotion runs from December 24, 2025, to January 24, 2026, with a single-user limit of 50,000 USD1, first come, first served. The borrowing rate of 1.87% is based on the BNB Chain and collateralized assets like slisBNB LSD tokens. The net profit margin is about 18.13% APY. It sounds good, but only if you can control several variables.

Preparation before getting started is essential. You can use Binance Web3 Wallet or MetaMask, but the key is to be on the BNB Chain, with BNB, slisBNB, ETH, or wBETH as collateral, and keep some BNB for gas fees. Completing Binance KYC verification is mandatory, and connecting your wallet on the Lista DAO official website for authorization is also necessary. Don't skimp on security—enable two-factor authentication for your wallet.

The operation process isn't complicated. Step one: select collateral assets in Lista Lending and deposit them. The most critical part here is to keep the collateral ratio below 70% to avoid liquidation risks. After obtaining the borrowing limit, proceed to step two: borrow USD1. Step three: transfer the borrowed USD1 to your exchange account and subscribe to the USD1 principal-protected earning product. Pay attention to slippage costs and actual received amounts. Step four: hedge risks—monitor Lista's collateral ratio changes and adjust collateral amounts accordingly; also track the interest rate changes of the exchange's Earn product. Step five: wait for the yield cycle to end and record the actual APY. Step six: repay the loan, withdraw the principal and interest from the Earn product, and redeem the collateral.

This arbitrage seems simple, but slippage, exchange rate fluctuations, and liquidation risks can eat into some of the profits. If collateral prices drop or USD1 fluctuates, the situation becomes more complex. It is recommended to start with small amounts to test and familiarize yourself with the risks before scaling up.