Binance has launched a 12% annualized interest subsidy for USDC savings for up to 30 days, and then launched an event to reduce the borrowing interest for USDC by 4%. So the arbitrage opportunity has emerged: let's start circulating loans 😀
My approach is:
1. Do not borrow USDT, only borrow USDC to take advantage of the interest differential.
2. In the second round, use the savings USDC as collateral to borrow BTC (with the lowest interest).
3. Then use the borrowed BTC as collateral to borrow USDC.
In the end, as shown in the picture: the borrowing interest creates a negative annualized return (positive yield).
Also, currently, the USDC to USDT exchange rate is declining, so minimize exchange rate risk.
