Revolving Loans Learned

How to Achieve an Annualized Return of 27.19% on Binance USDC Wealth Management

It is well known that Binance recently launched a flexible wealth management product for USDC with an annualized return of up to 11.67%. So how can we achieve a higher return? This involves circular borrowing... Using the USDC from wealth management as collateral to borrow USDT, then converting it back to USDC for wealth management, and then using it as collateral to borrow USDT again, and repeating this process 10 times can achieve an annualized return of 27.19%.

Using 10,000 USDC for flexible wealth management, the collateral rate for borrowing USDT is 78%, and the interest rate is 6.85%.
The first collateral of 10,000 USDC can borrow 7,800 USDT which is converted to USDC for wealth management.
The second collateral of 7,800 can borrow 6,084 USDT which is converted to USDC for wealth management.
………
Repeating this process 10 times, the total borrowed amount reaches 32,499 USDT, with annual borrowing interest of 32,499 X 0.0685 = 2,226.1815.
The total deposit of USDC is 10,000 + 32,499 = 42,499, with annual deposit interest of 42,499 X 0.1167 = 4,959.6333.

The total profit is: 4,959.63 - 2,226.18 = 2,733.45.
The return rate is: 2,733.45 / 100,000 X 100% = 27.19%.

Have you learned it thoroughly?

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