Many people treat holding cryptocurrencies like riding a roller coaster, with prices fluctuating wildly and their hearts unable to take it. But there are others who don't care much about price ups and downs; they prefer stable rental income like a "landlord"—earning daily from transaction fees.

On-chain liquidity providers are doing exactly this business. But here’s the problem: becoming an LP requires real money. If you hold long-term positions in BTC and BNB but don’t want to sell them to set up an LP position, what should you do?

There’s a clever way: collateralize your main assets, borrow stablecoins to do LP, and earn fees with other people’s money. It sounds a bit like a fantasy, but this is the charm of DeFi.

**Why use USD1 for stablecoin LP?**

First, borrowing is cheap. On major lending platforms, stablecoin interest rates are only 0.02-5%, which is ridiculously low. Second, the incentives are strong. As a stablecoin supported by leading exchanges and platforms, USD1 has an extremely high mining weight on major DEXs, meaning your fee earnings could far exceed expectations.

The most critical point: if you create a USD1-USDT stablecoin pair, there’s almost no impermanent loss. Your principal is relatively safe, and risks are greatly reduced.

**How to operate? In two phases**

Phase one: acquire production assets. Deposit your BTCB, ETH, or other core assets into a lending platform, then borrow USD1. Here, you can be slightly aggressive because the borrowed funds are used for stablecoin LP, which has limited value fluctuation and manageable risk.

This way, you maintain your long-term asset positions while leveraging borrowing tools to generate additional returns. A win-win situation.