A friend of mine has recently been considering crypto lending, trying it out with a principal of 250,000 USDT for a 3-day period. I helped him organize the calculations.

First, let's look at the income from the lending: 250,000 × 4 ÷ 365 × 3 × 0.058 = 476.71 USDT. Then, the cost of borrowing the coins: 250,000 × 1.3449 ÷ 365 × 3 × 0.058 = 160.28 USDT. Subtracting the two, the net profit is 316.43 USDT — it looks pretty good.

But to be honest, the risks are also present. If the coin price fluctuates too wildly, the interest on the borrowed coins might increase as well. In the worst case, if a liquidation occurs, it could be a loss. On the other hand, if your collateral assets are large enough, the risk factor can be significantly reduced. The key is not to max out the borrowing limit, leaving enough buffer space to avoid forced liquidation.

This is purely a personal approach based on data, for reference only, and does not constitute any investment advice.