🔥Binance RLUSD Round 1 XRP airdrop is here! 22%+ annualized!
😭But I stepped into the lending trap, and yet again I got burned—only about 13%+ (a blood-loss of 76u) → Attached below is the way to crack it
📅I投入 44279u on 7/17. It was exactly 7 days, but I only received 99 XRP. I sold it for 110u. Let me analyze why.
1⃣️On 7/17, 7/20, and 7/21 the funds didn’t move.
⚡️→ The total snapshot balance over 3 days was 44279*3=132837u
2⃣️On 7/18, 7/19, 7/22, and 7/23 I temporarily borrowed about 33000u, then paid it back quickly. When the USD price was 1, I tried that and found it didn’t deduct the airdrop quota—but for RLUSD, it did deduct, and there was no discount. The entire borrowed portion was deducted directly when I borrowed it out!
⚡️→ The total snapshot balance over 4 days was 11279*4=45116u
🧮Average 7-day snapshot balance (132837+45116)/7=25421u
💰Actual annualized: 110/7*365/25421=22.56%
🤔Summary of the pitfalls and how to avoid them:
1⃣️The RLUSD lending rules look quite similar to USD1 on the surface, but the real differences are huge. It’s very possible that the snapshot times are more frequent! Even if you borrow a stablecoin for just one minute, the borrowed portion will have its snapshot quota deducted for that day—and unless you convert the borrowed amount back into RLUSD and deposit it, it won’t get the 4/10 treatment. In other words, stablecoin circular lending doesn’t work.
2⃣️So doing nothing is the best. If you really need temporary use of other stablecoins, you can workaround: first borrow BTC in the unified account → use BTC to subscribe to the flexible wealth management product → in the wealth management interface click “borrow coins” → use the BTC as collateral to borrow USDT. By using BTC as a one-layer intermediary, you can bypass the stablecoin-deduction rule. But the downside is also obvious: you have BTC interest to pay, and you must manage the leverage ratio on both sides to avoid liquidation, which will definitely reduce how much stablecoin you can borrow.
🧠Because I was too overconfident—I thought my investing was “super good” without thoroughly understanding the rules. I operated using the USD1 way of thinking. If you borrow BTC and then use it to borrow USDT against BTC collateral in a more stable manner, nothing would go wrong. So each time there’s a new promotion, you should treat yourself like a beginner and research it. Don’t rely on惯性思维. Don’t assume you already know. Losing face is minor, but losing u for real is the bigger deal!
🙋Did anyone participate in the first week’s RLUSD airdrop? Let’s calculate whether the annualized is also 22%+. But next week, I guess it’ll get more competitive—any guesses what the annualized will be? I estimate around 10%. What about you?
😭But I stepped into the lending trap, and yet again I got burned—only about 13%+ (a blood-loss of 76u) → Attached below is the way to crack it
📅I投入 44279u on 7/17. It was exactly 7 days, but I only received 99 XRP. I sold it for 110u. Let me analyze why.
1⃣️On 7/17, 7/20, and 7/21 the funds didn’t move.
⚡️→ The total snapshot balance over 3 days was 44279*3=132837u
2⃣️On 7/18, 7/19, 7/22, and 7/23 I temporarily borrowed about 33000u, then paid it back quickly. When the USD price was 1, I tried that and found it didn’t deduct the airdrop quota—but for RLUSD, it did deduct, and there was no discount. The entire borrowed portion was deducted directly when I borrowed it out!
⚡️→ The total snapshot balance over 4 days was 11279*4=45116u
🧮Average 7-day snapshot balance (132837+45116)/7=25421u
💰Actual annualized: 110/7*365/25421=22.56%
🤔Summary of the pitfalls and how to avoid them:
1⃣️The RLUSD lending rules look quite similar to USD1 on the surface, but the real differences are huge. It’s very possible that the snapshot times are more frequent! Even if you borrow a stablecoin for just one minute, the borrowed portion will have its snapshot quota deducted for that day—and unless you convert the borrowed amount back into RLUSD and deposit it, it won’t get the 4/10 treatment. In other words, stablecoin circular lending doesn’t work.
2⃣️So doing nothing is the best. If you really need temporary use of other stablecoins, you can workaround: first borrow BTC in the unified account → use BTC to subscribe to the flexible wealth management product → in the wealth management interface click “borrow coins” → use the BTC as collateral to borrow USDT. By using BTC as a one-layer intermediary, you can bypass the stablecoin-deduction rule. But the downside is also obvious: you have BTC interest to pay, and you must manage the leverage ratio on both sides to avoid liquidation, which will definitely reduce how much stablecoin you can borrow.
🧠Because I was too overconfident—I thought my investing was “super good” without thoroughly understanding the rules. I operated using the USD1 way of thinking. If you borrow BTC and then use it to borrow USDT against BTC collateral in a more stable manner, nothing would go wrong. So each time there’s a new promotion, you should treat yourself like a beginner and research it. Don’t rely on惯性思维. Don’t assume you already know. Losing face is minor, but losing u for real is the bigger deal!
🙋Did anyone participate in the first week’s RLUSD airdrop? Let’s calculate whether the annualized is also 22%+. But next week, I guess it’ll get more competitive—any guesses what the annualized will be? I estimate around 10%. What about you?