When participating in Binance USD1 20% annual event for lending and borrowing, there are many available currencies and collateral types to choose from.

PT-USDe is selected as collateral because PT itself generates interest, giving it an advantage over USDT/USDC, BNB, or BTC.

Other similar interest-bearing assets include asUSDF.

Of course, choosing PT-USDe also carries certain risks and wear, such as exchanging USDT for PT-USDe and then converting PT-USDe back to USDT later.

However, overall, these risks remain within manageable limits.

Additionally, while writing this reference tutorial, it was discovered that borrowing USD1 with PT-USDe allows for revolving lending, with a single interest rate of 3.8%.

I originally intended to try it out, and luckily, a community member was also discussing this strategy.

One of them advised against it!

The reason is that the current ENA price is still at a previous low level, while USDe only has points and no low-interest option, so the interest rate of PT-USDe mainly depends on ENA's price. If the market recovers, PT's interest rate will rise. At that point, not only will the collateral value decline, but the borrowing interest rate will also increase, making it counterproductive.

The logic and reasoning are solid, so I ultimately gave up on the revolving idea.

Although the market is neither clearly bearish nor bullish right now, ENA's price has indeed dropped significantly compared to before.

Therefore, I'd like to remind those currently using or planning to try revolving strategies to proceed with extra caution.

#USD1理财最佳策略ListaDAO @ListaDAO $LISTA

Note: The above information is for sharing only and not investment advice. Please conduct your own research!

DeFi Enthusiast: BitHappy