Recently, a stablecoin investment product has become popular, with an annualized return of 20% attracting many people. But before deciding to participate, there are a few key questions worth clarifying.

The first question to answer is: how much exchange rate fluctuation is needed to cover this yield? Many people only look at the 20% figure but overlook the risk of stablecoin de-pegging. In fact, based on the current activity rules, the daily yield corresponds to an exchange rate decline of about 0.00055. It sounds small, but over 30 days, it adds up—giving an overall exchange rate safety margin of approximately 0.0163.

To understand this more intuitively: suppose you buy in at a price of 1.0020. The break-even point after 30 days would be around 0.9855. If the price drops below this number, the interest earned will be completely offset by exchange rate losses, and you might even lose principal.

These figures are not arbitrary; they are derived from historical stablecoin investment cases and current activity rules. It’s recommended to compare these calculations with your actual purchase price to get a clearer picture.

After understanding the break-even line, you also need to consider market liquidity, withdrawal cycles, and other factors. Stablecoin investments may seem like a passive income, but in reality, it’s a carefully balanced game of exchange rate risk. Every profit corresponds to a certain risk exposure, and this balance point deserves your careful consideration.