A risk warning for friends doing rate arbitrage at @Backpack: 1. The utilization rate of the $USDC lending pool on the platform has reached 87%. Currently, those depositing U can earn a monthly yield of 6.84%, while the interest rate for borrowing U to buy spot is 5.81%. 2. This interest rate is currently acceptable. Assuming major cryptocurrencies are leveraged 10 times for spot contract hedging, and the rate remains at the current level: $BTC and $ETH have an annualized return of around 50%, while $SOL can reach up to 100% due to staking rewards. 3. However, once the $USDC lending pool reaches a borrowing rate of 91%, the borrowing interest will sharply rise to a terrifying 10.1%. At that point, the arbitrage will no longer be profitable, and if the borrowing rate goes even higher, it could lead to losses. It's important to note that the second season has only been two weeks so far, and many people haven't even recovered the costs of opening a position once, yet they will have to pay again to close their positions, which will be very painful. 4. I hope the officials can work hard and attract more deposits, thank you. 🥰 @armaniferrante