Recently, I came across a solid stablecoin yield farming method on a certain DeFi protocol. The combined annualized return can reach about 17.8%, making it especially suitable for beginners, with decent risk control.

The core idea is quite straightforward: stake stablecoins to earn yields, then use the generated certificates to borrow coins for arbitrage, stacking both sides' returns. I’ve prepared a step-by-step guide, so even beginners can get started from zero.

**Preliminary Preparations**

Your wallet should be on the BNB Chain (MetaMask is the most convenient). Prepare stablecoins like USDT or USDF as your main funds, and also reserve some BNB to pay gas fees, with 0.05 BNB usually enough.

**Step 1: Staking and Conversion**

Connect your wallet and go to the staking section, select the USDT staking pool. Suppose you deposit 1000 USDT; the system will mint an equivalent asUSDF certificate. The fixed annualized yield here is about 4.6%, so you earn passive income while holding, and the certificate can still be used.

**Step 2: Borrow for Arbitrage**

This is the key part. Use the asUSDF as collateral to borrow USD1 in the lending section. Be mindful of risk control—set the collateral ratio below 60% for safety, with the platform’s liquidation threshold at 80%, leaving enough buffer.

When borrowing, choose a pool with low interest rates, ideally in the 2%-2.5% range. Avoid high-interest pools, as the interest spread can eat into your profits.

**Step 3: Deposit into the Yield Vault**

The borrowed USD1 can be further deposited into the protocol’s dedicated vault to generate interest, adding another layer of yield. Multiple sources of income stack up, boosting the annualized return.

**Data Summary**

Investing 1000 USDT yields about 4.6% from staking, approximately 8%-9% from the loan interest spread, and over 4% from the vault gains, totaling close to 17.8%. The entire process only costs a few dollars in gas fees, making it beginner-friendly.

**Risk Reminder**

Of course, it’s important to stay vigilant—while the annualized return is attractive, involving collateral and borrowing means you should regularly check your collateral ratio to avoid liquidation. Stablecoins are less volatile, but in extreme market conditions, they can lose their peg. Everyone’s risk tolerance is different, so adjusting your investment proportion according to your situation is crucial.

This method remains a good choice in the current market environment, combining the safety of stablecoins with the potential to enhance returns through compound strategies. I feel DeFi is all about creating value within these small but precise arbitrage opportunities.