I've set aside some funds to try the USDGO investment product,
BG @Bitget_zh was watching it right when it first launched, and just recalculated the returns which look fairly attractive. I hadn't gotten in earlier because, first, I thought the short‑term subsidy might not last, and second, the arbitrage space for the revolving loan seemed limited.
Now that the official subsidy has been released, it feels like a reassurance pill.
Some friends who don't get the revolving loan have DM'd me; if you don't want to take the time to learn and understand and are being lazy, I think you can simply switch to stablecoins and earn interest—no need to tinker around. Don't experiment without learning; that's the basic principle.
If you want to understand, the basic principle is actually simple:
For example, if you use 100 U to buy USDGO, at a 6% annual rate that yields 6 U. But if you use leverage, say 5‑10×, you effectively use your capital to control a larger USDGO position.
The profit comes from USDGO, the cost comes from borrowing USDT.
As long as the USDGO yield can cover the USDT borrowing cost, and part of the fees and wear are subsidized by the campaign, the effective annualized return is boosted.
The mechanics aren't complicated: use USDT to buy USDGO on the USDGO/USDT leveraged pair, then place it in a unified account, with interest calculated T+1 and paid T+2;
After holding for 14 days, sell it back to USDT using leverage; during the campaign, fees are refunded and there are subsidies for slippage and exchange‑rate loss.
Thus it's more suitable for people with idle U who don't want to bear much price volatility, looking for a short‑term stablecoin yield boost—worth researching.
But one must note: this is not risk‑free arbitrage.
Even though the leveraged fees and exchange fees are waived, borrowing rates can change, stablecoins aren't 100% constant, and leverage isn’t free. These are low‑probability events but have occurred, so when using the revolving loan, be aware of the various risks within your tolerance.
Personally, I would stay within 5× leverage and keep an eye on the full‑margin rate. Remember, the most important thing in investing is the principal. This USDGO opportunity earns money from platform subsidies and capital efficiency; if the fundamentals shift, be ready to pull out the funds.
