As we enter 2026, the macro environment is full of uncertainties—CPI data fluctuates unpredictably, and new tariff policies emerge one after another. These fluctuations make the opportunity cost of simply holding coins increasingly high. Instead of passively waiting for the market to take off, it’s better to take proactive steps. Recently, I’ve been focusing on studying the DeFi mechanisms on the BNB Chain, especially a series of strategies around the decentralized stablecoin lisUSD, and have developed a set of plans that can significantly improve capital efficiency.

**What is "LSD Leverage Double Circulation"?**

Simply put, it involves a three-layer nested process of staking, lending, and liquidity mining, allowing your principal to earn basic yields while also leveraging additional gains. It sounds complex, but the actual operation is not difficult.

**Layer One: BNB Activation Campaign**

Many people are still holding BNB passively; I think that’s a waste. Instead of letting BNB sit in your wallet collecting dust, you can stake it to convert into slisBNB. What does this accomplish? On one hand, you earn rewards from BNB node validation; on the other hand, you won’t miss out on potential price increases of BNB itself—adding a double insurance to your core position.

**Layer Two: Liquidity Release Technique**

With slisBNB, the next step is to use it as collateral to borrow lisUSD. The key is not to be too greedy—keep the loan-to-value (LTV) ratio at a safe level of 50%-60%. The clever part here is that you’re essentially “cash-out without loss”—without selling your BNB, you’re extracting liquidity.

**Layer Three: Mining Booster**

This is where true yield hunters come in. Take the borrowed lisUSD and deposit it into liquidity pools of stablecoins on top-tier DEXs like PancakeSwap or Thena, for example, lisUSD trading pairs. While stablecoin pools seem low risk, their APYs can often reach double digits—especially during new token launches, when rewards are particularly generous.

This is why I call it the "Double Circulation": the first cycle is the passive income from BNB staking, continuously generating yields; the second cycle is active income from lisUSD mining, steadily accumulating. When both wheels turn together, the effect is immediate and obvious.

**Don’t Forget the Risks**

Of course, every strategy has pitfalls. Setting the LTV is the first line of defense—if BNB’s price crashes sharply, a high LTV could lead to liquidation risk, so always leave some buffer. Second, the smart contract risk of liquidity pools always exists; be sure to verify the code audit reports of the projects you choose. Lastly, while the risk of stablecoins de-pegging is low, it’s still something to be aware of.

**Practical Tips**

For your first operation, don’t deploy your entire assets—start with small amounts to verify the process, then gradually increase your position as you become more familiar. Also, equip yourself with monitoring tools—keep an eye on LTV levels, pool TVL changes, and BNB price fluctuations. Some people try to maximize profits by pushing LTV to 70% or 80%, but a sudden market crash can lead to liquidation, which is not worth the risk.

Overall, in 2026, simply holding coins will no longer be enough to beat inflation on-chain. Active participation in DeFi, through carefully designed capital allocation strategies, can indeed generate excess returns. The lisUSD mechanism is a good testing ground—just make sure you truly understand each step’s logic instead of blindly following the trend.