I took some funds to prepare to do this investment with USDGO,

BG @Bitget_zh I have been watching since it was just launched, and I just calculated the returns, which are quite considerable. I didn't invest earlier because, firstly, I felt that this wave of short-term subsidies might not be enduring, and secondly, the arbitrage space with revolving loans is limited.

Now that the official subsidy has been announced, it feels like a reassuring sign.

Some friends who don't understand revolving loans private messaged me. If you don’t want to learn and understand, I think you can just exchange them for stablecoins to earn interest instead, without much hassle. Don’t play around if you don’t learn; this is still a basic principle.

If you want to understand, the basic principle is actually simple:

For example, if you originally used 100U to buy USDGO, at a rate of 6% per year, it would yield just 6U. But if you use leverage, say 5-10 times, it's like using your own principal to leverage more USDGO positions.

Returns come from USDGO, while costs come from borrowing USDT.

As long as the yield from USDGO can cover the borrowing costs of USDT, with some fees and wear and tear being subsidized by promotional activities, the actual annualized return will be elevated.

It’s not complicated to play: buy USDGO using USDT on the USDGO/USDT leverage trading pair, then deposit it into a unified account; interest will be calculated on T+1 and distributed on T+2;

after holding for 14 days, sell back USDT through leverage; during the promotion, fees are refunded, and there are corresponding subsidies for slippage and exchange rate losses.

So this is more suitable for those who have idle U and do not want to bear too much price volatility in currencies, doing some short-term stablecoin yield enhancement is worth studying.

But here it’s important to note: it is not a risk-free arbitrage.

Although the leverage fees and exchange fees do not apply to you, the borrowing rates can change, and stablecoins are not guaranteed to be entirely constant. In the end, leverage is not free. Although these are low-probability events, they have occurred before, so while engaging in revolving loans, be aware of various risks within your tolerance range.

Personally, I might keep it within 5 times and closely monitor the overall margin rate. You should know that in investments, the most important thing is the principal. With this opportunity in USDGO, the profit comes from platform subsidies and capital efficiency. If some fundamental changes occur, be cautious about withdrawing funds.

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