Hold Bitcoin and bullish on the market but don't want to sell? Consider this approach: exchange BTC for liquidity while maintaining your coin exposure.
Specific operational steps:
**Step 1: Collateralization and Yield** Deposit BTCB into a leading lending protocol, and after collateralization, borrow stablecoins with an annualized yield of approximately 1.11%. This way, your BTC remains unsold while you obtain stablecoins.
**Step 2: Monitor Liquidation Threshold** A critical point — the liquidation price in such protocols is typically set at 70% of collateral value. If your LTV ( borrowing ratio ) is too high, a price decline can easily trigger liquidation, so you must leave sufficient buffer space.
**Step 3: Stablecoin Appreciation** Transfer the borrowed stablecoins to a leading exchange's financial products to leverage 20% active lending returns. Note that this high yield is only available for the first 50,000 units, with significantly reduced returns beyond that amount.
**Return Calculation** Assuming you borrow at 50% LTV: The financial product return of 20.06% minus borrowing costs of 1.11% yields net returns of approximately 18.95%. Multiplied by the 50% borrowing ratio, the final annualized return reaches 9.48%.
The core of this strategy is to generate additional returns from idle portions while maintaining your BTC exposure. However, you must calculate the risks clearly.
Hold Bitcoin and bullish on the market but don't want to sell? Consider this approach: exchange BTC for liquidity while maintaining your coin exposure.
Specific operational steps:
**Step 1: Collateralization and Yield**
Deposit BTCB into a leading lending protocol, and after collateralization, borrow stablecoins with an annualized yield of approximately 1.11%. This way, your BTC remains unsold while you obtain stablecoins.
**Step 2: Monitor Liquidation Threshold**
A critical point — the liquidation price in such protocols is typically set at 70% of collateral value. If your LTV ( borrowing ratio ) is too high, a price decline can easily trigger liquidation, so you must leave sufficient buffer space.
**Step 3: Stablecoin Appreciation**
Transfer the borrowed stablecoins to a leading exchange's financial products to leverage 20% active lending returns. Note that this high yield is only available for the first 50,000 units, with significantly reduced returns beyond that amount.
**Return Calculation**
Assuming you borrow at 50% LTV: The financial product return of 20.06% minus borrowing costs of 1.11% yields net returns of approximately 18.95%. Multiplied by the 50% borrowing ratio, the final annualized return reaches 9.48%.
The core of this strategy is to generate additional returns from idle portions while maintaining your BTC exposure. However, you must calculate the risks clearly.