Recent liquidity mining activities involved investing in USDT-USD1 LP positions to participate in a stablecoin mining incentive. The initial setup was approximately 85% USDT and 15% USD1, but impermanent loss occurred quite quickly—within a few days, it evolved to a nearly 50-50 allocation.

Calculating the costs: borrowing 100,000 USD1 requires pledging 108,000 in collateral, plus bearing a 3% interest rate on the loan. After all the adjustments, the actual APY is around 16%. During the same period, a certain exchange offered a 20% APY for USD1, which makes the comparison interesting.

The core issue here is quite concerning: if USD1 itself has security risks, then no matter how attractive the mining returns are, DeFi lending protocols connected to this chain will also find it hard to remain unaffected. In other words, what appears to be a higher yield on the surface may actually be a gamble on a relatively riskier asset. Whether to participate depends on how much risk you are willing to bear.