Borrowing coins to earn interest looks good, but the waters are indeed deep. Let's talk about some common pitfalls that can easily cause stablecoin investment to fail on over-collateralized lending platforms.

First is liquidation risk, which is often overlooked. For example, if you use BNB as collateral to borrow stablecoins, and the BNB price suddenly drops, the value of your collateral may no longer cover the debt. The system will automatically liquidate your assets to repay the loan, resulting in a loss. Therefore, never set your collateral ratio too close to the limit; leave enough buffer to avoid being forcibly liquidated during market volatility.

Next is the risk inherent in the smart contract itself. Although these projects are sizable and have undergone audits, no one can guarantee that the code is bug-free 100%. So don’t put all your assets into one basket; always maintain risk awareness.

Be also cautious about the de-pegging of stablecoins. While they are usually over-collateralized, in extreme market conditions, they can temporarily deviate from their target price. However, most of these coins have redemption mechanisms to stabilize the price, and in the long run, they tend to recover.

Finally, don’t forget your own part—entering the wrong URL, clicking the wrong link, accidentally granting unlimited permissions... Retail investors often fall into these operational risks. Always access platforms through official channels, and review every step carefully before confirming.

Remember: high returns are synonymous with high risks. Don’t rush for quick profits; start small, get familiar with the process, and then increase your position gradually.