Alpha Value-Added Program: USDC Arbitrage and Trading Strategy
$Combine stablecoin wealth management and staking lending to explore high-yield investments for stable interest differentials while optimizing the efficiency of trading capital usage and reducing slippage losses.
Part One: Execute USDC High-Yield Arbitrage
Step One: Convert Assets
Asset Conversion: To maximize the use of this high-yield opportunity, convert all your USDT into USDC.
Step Two: Subscribe to High-Yield Products
Operation Entry: Open the Binance App, go to the 'Wealth Management' page, and find the target USDC flexible product.
Execute Subscription: Enter the total USDC amount and complete the subscription. At this point, this portion of funds will start earning returns at a higher annualized rate (e.g., 11.65%).
Part Two: Execute Trading Strategy (Core of the Alpha Program)
When funds are needed for spot or contract trading, execute the following steps to avoid selling USDC that is currently invested.
Step Three: Stake Assets and Borrow USDT
Operation Entry: On the 'Wealth Management' page, find and click 'Stake and Borrow'.
Select Collateral: In the 'I want to stake' section, choose the collateral assets that are actively earning in the flexible USDC product.
Select Borrowing Currency: In the 'I want to borrow' section, select USDT. USDT has better liquidity and lower slippage. Confirm Borrowing: After confirming the interest rate and liquidation price, execute the borrowing.
Step Four: Monitor Core Risk Control Indicators
During the lending process, it is crucial to closely monitor the following indicators to ensure asset safety:
LTV (Loan-to-Value Ratio): The ratio of the loan amount to the value of the collateral. The lower the LTV, the safer the position. Liquidation Price: When the price of the collateral falls to this level, the system will forcibly liquidate.
Step Five: Use USDT for Trading
Transfer the borrowed USDT to the spot or contract account to begin trading. After the trade is completed, repay the USDT loan and interest to redeem the collateral.
Strategy Summary and Risk Warning
Essence of the Strategy: Why operate this way? Because in most trading pairs, the liquidity of the USDT trading pool is far greater than that of USDC. Directly using a large amount of USDC for trading may result in significant slippage (i.e., 'wear'), leading to unfavorable execution prices. By borrowing USDT for trading, this issue can be effectively avoided.$ETH