Looking for stable returns in the crypto space? Arbitrage strategies are definitely worth in-depth research. Recently, I discovered a good combination approach — by using a leading Liquid Staking protocol on conjunction with stablecoins, you can achieve relatively stable monthly yields.

The core idea of this approach is simple: profit from the interest rate differences between protocols. How exactly does it work?

First, stake BNB in a leading Liquid Staking protocol on BNB Chain to receive the corresponding LST tokens (currently with a TVL of $4.3 billion, offering relatively secure safety). These LST tokens not only generate basic staking rewards but also appreciate in value over time — recently, the price of such tokens surged to around $925 per token, earning a profit just from appreciation.

Next is the key step: use the LST tokens as collateral to borrow stablecoins. The borrowing costs on these protocols are ridiculously low, with daily interest rates almost negligible. The borrowing limit is directly determined by your collateral, and on-chain operations can be completed within minutes without complicated approval processes.

After obtaining stablecoins, you can transfer them to active lending platforms for short-term financial management. The annualized yield within new user limits can reach 20%, and even the standard rates for existing users are more competitive than most platforms. You can withdraw after about half a month, and the interest difference in between is pure profit.

Here's a simple calculation: suppose you stake 10 BNB, which can borrow a substantial amount of stablecoins. After deducting the very low borrowing costs, the arbitrage profit over a half-month cycle is quite attractive. This low-risk cross-protocol arbitrage is indeed a good passive income source for friends holding BNB or stablecoins.