The essence of a revolving loan is to take a piece of interest bearing collateral, repeatedly "mortgage borrow money exchange collateral re mortgage", and stack the same principal several times the position, eating the spread between "interest income+activity subsidy" and "loan interest". Previously, for revolving loans, one had to go through the process of depositing, borrowing, exchanging, and re depositing, as well as calculate their own health factors, liquidation price, and slippage points. Now OKX offers a single transaction for deposits, exchanges, and loans, with the number of cycles set by yourself. Before placing an order, you can see the estimated returns, borrowing costs, and clearing prices. Get it done with just one click in OKX Wallet! Speaking of people, what you truly earn is not the "cycle" itself, but the combination of these three things: 1. PT-USDG will thrive on its own First, break down USDG into Pendle principal certificates PT. PT will move towards face value as it approaches maturity, with fixed income and activity subsidies during the period. 2. Aave acknowledged this PT as collateral and gave it very generously Aave V3 on X Layer accepts PT-USDG, and LTV can reach approximately 93.59%. The meaning is: if you bet 100, you can borrow around 93 yuan. 3. Exchange the borrowed money back into PT and continue to bet I borrowed USDT and converted it into PT-USDG before depositing it. The more cycles there are, the larger the effective position, and the spread is also amplified. A positive interest rate spread makes a cycle meaningful; The interest rate spread turns negative, and the cycle is working for the agreement, which may also be liquidated. Operation process: ·Open OKX Wallet, go to DeFi → Loop Earn Coins. ·Choose USDG/PT-USDG. Focus on three things before taking action: Estimated net annualization Borrowing cost ·Clearing price/health factor ·Adjust the number of cycles by yourself. Low frequency, small leverage, and safety; Multiple times, APY looks good, but closer to liquidation. ·A transaction completes the process of 'deposit ->borrow ->exchange ->re deposit'. ·Then focus on health factors. ·If you come up with it, go to the position page to redeem it. The system will help you balance the cycle, repay the debt, and return the remaining balance to your wallet. The amount received will be affected by slippage, liquidity, and the current price. Old players used to manually loop, but the essence is completely the same. The difference is that now you don't have to split ten transactions by yourself, nor do you have to use a calculator to calculate the LTV for each layer. In conclusion, revolving loans are not a new strategy, but rather a one click leverage that combines interest bearing assets, high LTV loans, and exchange returns. The core earns interest rate spreads, while the core dies from clearing and interest rate spread reversals.