Many people view certain DeFi lending protocols only through the lens of trading profits, actually overlooking their core value as wealth management tools.

In the wealthy classes of developed countries in Europe and America, there is a classic strategy called Buy Borrow Die——buy assets, continuously borrow, and hold for life. These people rarely sell appreciated assets proactively, instead using collateral to obtain liquidity. This was once an exclusive game for the rich, but now ordinary retail investors can play too.

Imagine this scenario: you bought BNB at a low price a few years ago, and now it has increased tenfold. You want to buy a car. Selling the coins directly for cash? That’s the dumbest move. First, you’ll have to pay a huge capital gains tax, and second, you’ll forever lose the opportunity for these BNB to continue appreciating.

The smart move is: deposit BNB into a lending protocol, borrow stablecoins, then exchange them for fiat through off-chain channels for consumption. Tax-wise, borrowing isn’t considered income, so there’s no need to pay taxes. You do have debt, but your BNB assets are still appreciating continuously. As long as the long-term growth of BNB can cover the borrowing costs, it’s like getting free use of that money, while still enjoying asset appreciation.

Moreover, the borrowing rates for these protocols are often extremely low, and after token incentives, they are basically negligible. This is the real secret to wealth—always maintain ownership of your assets, only consuming their liquidity.