Dynamic balancing strategy: How to turn Gate's USDT in the Residual Coin Treasure into a liquidity backup for DeFi yields

As of January 2026, Gate’s YuBiBao holdings have exceeded $2.5 billion, making it a leading service in the digital asset wealth management field. Behind this data is a concentrated reflection of users’ demand for flexible and stable returns.

Mainstream asset prices are at a critical juncture. According to Gate market data, as of January 29, 2026, Bitcoin (BTC) is priced at $88,840.3, Ethereum (ETH) at $2,995.14. Gate’s platform token GT also remains stable near the $10 mark. In the current market environment, finding a strategy that maintains liquidity while achieving substantial returns has become especially important.

Traditional Dilemmas and New Strategies

Traditional cryptocurrency management often faces a dilemma: either keep funds in exchange accounts ready for trading, but this leaves the funds idle; or invest in DeFi protocols or locked-in wealth management for higher yields, sacrificing liquidity.

Many investors find themselves trapped in a “either-or” mindset—either full-position trading or full-position wealth management. This mindset leads to large amounts of stablecoin assets being either idle in spot wallets or locked in a single investment channel for the long term. The main issue with this management approach is low capital efficiency. Especially during market volatility, investors often need to keep a certain proportion of stablecoins as “cash reserves,” which generate almost no returns while waiting for market opportunities.

The emergence of YuBiBao breaks this limitation. As a tool supporting instant redemption and seamless integration into trading workflows, YuBiBao allows users to avoid waiting for lock-up periods when market opportunities arise, and to avoid paying additional penalties when funds are needed.

Dynamic Balance Strategy

The core idea of the dynamic balance strategy is to divide funds into two parts: one as “liquidity reserve” stored in Gate YuBiBao, and the other as “yield engine” invested in carefully selected on-chain DeFi protocols. The key to this strategy is establishing a dynamic capital circulation system rather than fixing funds in a single function. Gate YuBiBao’s flexibility makes it an ideal liquidity reservoir, capable of quickly providing funds when market opportunities emerge.

Currently, the annualized return rate for USDT savings in Gate YuBiBao can reach up to 6.8%, and during specific events, such as the current “Crazy Wednesday” Phase 23, the 14-day fixed-term USDT savings can yield an annualized return of up to 10%. Meanwhile, on-chain DeFi protocols often offer higher yield opportunities but come with increased complexity and risk. Through dynamic balancing, investors can find the optimal allocation ratio between these two options.

Four Practical Steps

First, fund layering is necessary. A practical approach is to divide funds into three parts: active trading funds (about 30%), YuBiBao interest-generating funds (about 50%), and on-chain yield funds (about 20%). This allocation ensures trading flexibility while maximizing overall returns.

Second, set balance thresholds and trigger mechanisms. For example, when the proportion of on-chain yield funds exceeds 25% of total funds, automatically transfer the excess back to YuBiBao; when market conditions present obvious trading opportunities and YuBiBao funds fall below 40%, withdraw some funds from on-chain to replenish liquidity.

Third, utilize automation tools to improve efficiency. Various products within the Gate ecosystem can interact positively with YuBiBao. For instance, rewards earned from participating in Gate DEX’s “On-Chain All-Round Challenge” can be immediately deposited into YuBiBao for interest.

Fourth, continuous monitoring and adjustment. Market conditions change, and interest rates for different tokens will also adjust. Maintain flexibility by shifting funds to products offering the best risk-adjusted returns at the moment.

On-Chain Opportunities and Activity Empowerment

Recent activities launched by Gate provide additional gains for this strategy. During the “Crazy Wednesday” Phase 23 event, users participating in the 14-day USDT fixed-term savings can enjoy an annualized yield of up to 10%, with a chance to receive extra rewards.

Additionally, the event offers USDT savings with a 10% annualized rate, and for net subscription amounts ≥ 1,000 USDT, an extra 10 USDT fee cashback coupon can be obtained. These promotional bonuses significantly enhance YuBiBao’s attractiveness as a “backup.”

For BTC holders, Gate’s 7-day fixed-term BTC savings activity offers an overall maximum annualized return of up to 10.3%. Such activities provide additional income through a “dual yield structure,” without changing the original holdings.

Risks and Precautions

Although the dynamic balance strategy can improve capital efficiency, several key risks must be noted. Market volatility risk is one of the main concerns. Although USDT is a stablecoin, its wealth management yields fluctuate with market supply and demand.

On-chain protocol risks should not be overlooked. DeFi protocols may have smart contract vulnerabilities, impermanent loss, or protocol design flaws. Investors should conduct thorough research on on-chain protocols and only allocate part of their funds to high-yield but high-risk opportunities.

Liquidity management risk is also important. While YuBiBao supports instant redemption, in extreme market conditions, mass withdrawals by users could impact the speed of fund arrival. Therefore, maintaining an appropriate cash reserve remains necessary.

Opportunity cost should also be considered. Moving funds from high-yield on-chain protocols back to YuBiBao might cause missing out on further gains in on-chain yields. Conversely, over-investing in on-chain protocols could lead to insufficient liquidity when market opportunities arise.

Below is a comparison of three different risk preference strategies:

Ecosystem Synergy

The GT token plays a unique role in this dynamic balance strategy. GT holders can enjoy additional interest rate bonuses from YuBiBao and influence product development through governance participation. Currently, GT is deeply integrated into the Gate ecosystem, serving as the exclusive gas token for all on-chain transactions on Gate DEX. This cross-product synergy allows GT holders not only to earn higher yields in YuBiBao but also to enjoy various benefits across the entire Gate ecosystem.

For users adopting the dynamic balance strategy long-term, holding a certain proportion of GT can help enhance overall returns. The specific mechanism for interest rate bonuses is usually: base rate + GT bonus rate. This design creates a positive feedback loop: as YuBiBao scales up, GT demand increases, which in turn raises GT value and attracts more users to YuBiBao. As Gate continues to upgrade its ecosystem, YuBiBao’s role as a bridge connecting centralized and decentralized finance becomes increasingly prominent. Every token stored in YuBiBao is subtly changing its growth trajectory with each Gate ecosystem upgrade and GT value fluctuation.

In Gate’s recent “Crazy Wednesday” event, a standard 14-day USDT fixed-term product saw its annualized yield increase from the usual level to 10% due to activity bonuses. Behind this figure is the platform’s effort to incentivize users to optimize capital efficiency through activities. In Gate DEX’s vast ecosystem with total trading volume reaching $109 billion, every USDT finds its place—not waiting idly, but growing in yield, ideally balancing liquidity and appreciation dynamically.