Recently, there's an interesting arbitrage opportunity worth paying attention to—by combining liquidity tokens generated through staking with low-interest borrowing, you can really achieve good returns.

Let's start with the core logic. When you stake BNB, you'll receive interest-bearing assets like slisBNB, which not only retain staking rewards but also provide liquidity that can be used for collateralization. The clever part here is that the borrowing rate for stablecoins like USD1 is only around 0.4-1.2%, which is a rare low-cost rate across the entire network.

How does the operation work specifically? You can collateralize 50% of the value in BTCB or other assets, borrow USD1, and then use this borrowed amount to participate in high-yield products on leading platforms (there have been cases with around 20% APY). This way, the net yield can reach over 19%. Alternatively, for more advanced strategies, using interest-bearing assets like PT-USDe as collateral can enable multi-layered yield stacking—a single asset generating multiple streams of income.

However, there are several important points to note. First, the LTV (Loan-to-Value ratio) must be kept below 50% to provide buffer during market volatility. Second, keep an eye on the spread changes; this arbitrage opportunity is essentially a temporary market inefficiency, and as more people exploit it, it will be corrected. Lastly, avoid betting on a single channel; diversifying risk is crucial.

Honestly, such opportunities arise because of pricing discrepancies between different protocols, and some ecosystems can sustain this low-cost borrowing environment. But there’s no free lunch—higher yields come with higher risks, so careful risk assessment is essential. If you want to participate, start with small amounts to test the waters, understand the risks at each step, and then leverage gradually.