Looking to invest in stablecoins but don't know where to start? Actually, by leveraging Lista DAO's low-interest lending features combined with financial products, you can create a reliable arbitrage strategy. Without further ado, let's get straight to the essentials.

**The core idea is that simple**

Use BTCB as collateral on Lista DAO to borrow low-interest USD1 stablecoins, then deposit them into the financial pool to earn passive income. The key lies in the interest rate spread between borrowing costs and investment returns—Lista DAO's USD1 borrowing annualized rate is about 1%, while the investment yield can be stably around 19%. The difference is your net profit. This is completely passive income—you don't need to watch candlestick charts all day, nor do you have to gamble on price fluctuations.

**Step 1: Asset Preparation is essential**

First, you need to prepare BTCB on the BSC chain. This is very important because Lista DAO's lending pool is deployed on Binance Smart Chain; assets on other chains cannot be used directly. Beginners can start with a BTCB amount of $1,000–$3,000 to try it out. Also, remember to reserve some BNB for gas fees on the chain; otherwise, transactions might get stuck, which would be embarrassing.

**Step 2: Complete collateralization and borrowing on Lista DAO**

Connect your BSC wallet holding BTCB to the Lista DAO official website. Enter the "Lending - Supply" module, deposit your BTCB as collateral; then switch to the "Borrow" page, input the amount you want to borrow from the USD1 borrowing pool, and confirm the transaction. Honestly, this process is much simpler than some DEX liquidity mining. Plus, the annualized borrowing cost is really low—around 1%, which is a good rate in the DeFi lending market.

**Step 3: Transfer USD1 into the financial product**

Once USD1 arrives, transfer it to the financial platform. Be extra cautious here—double-check the receiving address, as a single mistake could send your coins into a black hole. Log into the relevant account, find the financial entry point, and transfer USD1 in. Most financial products support USD1, with annual yields around 18%-20%. The actual rate may vary depending on the product type.

**Breaking down the returns**

Suppose you invest $3,000 worth of BTCB. Borrow an equivalent USD1 on Lista DAO, with an annualized borrowing cost of $30; meanwhile, deposit $3,000 USD1 into the financial product, earning about 18% annually, which amounts to $540 per year. Subtracting the borrowing cost, your net profit is $510. This is an annualized return of about 17% on your initial investment. This calculation assumes BTCB price remains stable; if the price rises, you also benefit from appreciation, and vice versa.

**Don't forget the risk warnings**

While it sounds stable, DeFi lending also carries risks. A significant drop in BTCB price could trigger liquidation. Once your collateral is liquidated, the strategy fails. Therefore, always monitor your collateral ratio, and it's generally safer to keep it between 150%-200%. Additionally, the financial products themselves have risks—choose platforms with strong backing and clear risk levels.

**Tips**

The advantage of this strategy is that it is fully automated—borrowing, transferring, and investing form a seamless process, with little manual intervention needed afterward. The downside is that your funds are locked in, making it difficult to withdraw quickly in the short term. Therefore, it is most suitable for those with idle assets who want stable appreciation.