BitMart Earn offers a variety of convenient investment tools and products to help users get started easily Whether it's flexible or fixed savings, staking, dual investment, or wealth management, BitMart provides professional support and services every step of the way.
When you're concerned about market volatility but still want to earn returns, you can choose to pledge assets and borrow another token to subscribe to the earn product — an easy way to arbitrage.
For example, if you hold BTC, you can use flexible loans to pledge BTC and borrow USDT to participate in an earn. This approach allows you to avoid potential principal loss from a BTC price drop. After the investment ends, you simply need to repay the borrowed amount in USDT to complete the arbitrage strategy.
Example: you collaterize 1 BTC which has a current price of 100,000 USDT, and you borrow 50,000 USDT. Assuming the current annualized USDT borrowing rate is 8%, and meanwhile there is an earn product (e.g., wealth management) which has a term of 14 days and APY is 9%
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USDT Interest Expense: if the borrowing rate is 8% and you borrow the USDT for 14 days, then the interest expense will be 50,000 USDT * 8% * 14 / 365 = 153.42 USDT
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USDT Earn Product Income: if you invest the 50,000 USDT which you have borrowed into the above mentioned product (term is 14 days and APY is 9%), your earnings will be 50,000 USDT * 9% * 14 / 365 = 172.60 USDT
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Therefore you make a profit 172.60 - 153.42 = 19.18 USDT
- Please note that, the loan product is flexible and therefore the borrowing rate can change from time to time. Once the borrowing rate rises above the APY of the savings product (9%), this arbitrage opportunity will vanish
BitMart Team
July 08, 2025
