If you want to enjoy the gains from spot trading while also benefiting from Binance's 12% annualized wealth management, you can learn a low-risk arbitrage method: by staking mainstream coins (like ETH), borrowing USDC, and then investing in USDC wealth management products with a 12% annualized return, you can steadily earn the interest differential.
Detailed Steps
Step 1: "Staking Borrowing"
Operation Entry:
Open the Binance App and find and click on the "Wealth Management" account on the asset homepage.
In the wealth management page, find and click on the "Staking Borrowing" function.
Step 2: Select Collateral and Borrow USDC
After entering the staking borrowing page, you need to choose the asset to be used as collateral.
Select collateral type: In the "I want to stake" section, select the mainstream coin you currently hold, such as ETH. Enter the borrowing amount: In the "I want to borrow" section, select USDC and enter the amount to borrow.
Focus on Key Indicators:
Loan-to-Value Ratio (LTV): This is the ratio of the loan amount to the value of the collateral. The lower the LTV, the safer the position.
Borrowing Rate: This is the cost of the loan you need to pay.
Liquidation Price: When the price of the collateral falls to this level, the system will forcibly liquidate to repay the loan. Be sure to closely monitor this price!
Once confirmed, click "Confirm Borrowing".
Step 3: Invest Borrowed USDC into Wealth Management Products
After successfully borrowing USDC, return to the wealth management page and find USDC wealth management products.
Find the product: Locate the USDC flexible product in the wealth management or homepage activity entry.
Purchase: Enter the amount of borrowed USDC and click purchase.
Confirm Earnings: Check the expected annualized interest rate of the product; this rate needs to be higher than the borrowing rate in Step 2 to generate profit.
Currently, the deposit rate is 11.65%, and the borrowing rate is 5.23%, so the interest differential is the profit this time.
Through meticulous calculations and strict risk control, the value of idle assets can be maximized.