How should USD1 financial management be operated to be cost-effective?

USD1, as a stablecoin launched by Binance, has recently attracted attention with its subsidy program. Many investors want to understand whether this financial product is worth investing in, what the return rate is, and what operational options are available. This article will reveal the truth about USD1 wealth management from three dimensions: return rate calculation, practical operation plans, and risk warnings.

Where does the 20% annualized return come from

The return rate calculation logic of USD1 is relatively transparent. Currently, the total issuance of USD1 is about 3.2 billion, and the subsidy amount for this round is 40 million WLFI. Using the basic annualized formula (0.4 ÷ 32 × 12), the theoretical annualized interest rate is about 15%. However, considering that not all USD1 are circulating on the Binance platform, estimating based on the actual active on-chain portion, the annualized return could reach approximately 20%.

It is worth noting that directly purchasing USD1 involves certain costs. Currently, the premium at the time of purchase is about 0.17%, plus activity fees of about 1.25%, totaling approximately 15% slippage loss on the purchase cost. This means that even if you achieve a 20% annualized return, the actual net profit in the first year needs to deduct this cost. Conservatively estimated, an investment of 1WU can earn about 50U in rewards.

Comparing three operation plans, which one suits you best

Plan 1: Beginner Lazy Operation
The simplest approach is to directly exchange for USD1 and keep it in your Binance balance (note: do not put it in the wealth management product section, as that will prevent you from enjoying the subsidy; also, turn off auto-subscription). This way, you can automatically earn returns at a 20% annualized rate, suitable for investors with low risk tolerance and seeking stability.

Plan 2: Moderate Risk Leverage Operation
If you have some risk tolerance, you can transfer USD1 into a leverage account and then borrow USDT for trading. This method allows you to gain a 1.2x multiplier effect, amplifying your earning potential. It is suitable for investors with some market understanding.

Plan 3: Advanced High-Risk Play
More aggressive operators can lend out USDD to participate in liquidity mining (LP). This method offers the highest potential returns but also the highest risks, involving multiple market risks and smart contract risks. Unless you have extensive DeFi experience, it is not recommended to try.

Important risk notes for leverage advanced play

When choosing different operation plans, you need to act within your capacity. The beginner plan has the lowest risk but limited returns; leverage operations can amplify both gains and risks; DeFi liquidity mining may generate excess returns but involves project risk, slippage risk, and liquidation risk. The choice of plan should be based on your risk tolerance, investment experience, and capital scale. Do not blindly follow trends in pursuit of high returns.