Stablecoin wealth management can also generate high returns. Recently, a strategy has become popular in the Web3 community — by using DeFi portfolio strategies, the annualized yield on USD1 can reach over 12.6%.

The core approach is actually simple. First, a leading lending protocol supports using SolvBTC as collateral to borrow USD1, with an annual interest rate of about 5%. The borrowed USD1 can be deposited into a major exchange's wealth management product to earn a fixed 20% APY. At the same time, if you hold SolvBTC, you can also earn an additional 6.3% SolvBTC-denominated yield.

Another viable option is: using SolvBTC or xSolvBTC to borrow USDT (~5% APR) or USDC (~3.9% APR) from a DeFi protocol's core pool, then transferring to an exchange for wealth management, and finally converting into USD1. Currently, USD1 is priced around 1.002 USDT, with a 0.2% premium, which translates to an actual annualized yield of about 17.6%.

A simple calculation: 17.6% wealth management return minus 5% borrowing cost equals a net profit of approximately 12.6%. In terms of SolvBTC value, that’s about 6.3% (calculated at 50% LTV). This arbitrage cycle lasts 30 days, so those interested should act quickly.