Low-Risk Stablecoin Yield Products: Investment Choices During Market Turbulence

In April 2025, global financial markets experienced significant volatility due to changes in tariff policies. Trump announced the implementation of "reciprocal tariffs" on major trading partners, setting a baseline tariff of 10% and imposing higher rates on specific countries. This decision triggered a strong market reaction, with the S&P 500 losing $5.8 trillion in market value within just four days, marking the largest single-week loss in over 70 years. Bitcoin prices also fluctuated sharply between $80,000 and $90,000.

In the face of such a turbulent market environment, how should investors respond? Low-risk stablecoin yield products in the DeFi space may be a worthwhile option to consider, as they can provide a certain level of stability to the portfolio during this uncertain period. This article will introduce four types of yield products based on stablecoins for investors' reference.

It is important to note that the content of this article is for reference only and does not constitute any investment advice. Investors should make investment decisions based on their own circumstances and risk tolerance.

1. Spark Saving USDC (Ethereum)

This is a stablecoin storage product deployed on the Ethereum network. Users can deposit USDC to earn returns, which mainly come from cryptocurrency collateral loan fees, U.S. Treasury investments, and income generated from providing liquidity to lending protocols.

The stored USDC is exchanged for USDS at a 1:1 ratio through a stablecoin swap mechanism, and then deposited into the yield vault to earn returns. The value of the sUSDC tokens received by users will increase as the yields accumulate.

Risk Assessment: Low. USDC itself has high stability, and the product has undergone multiple audits to reduce smart contract risks. However, investors still need to pay attention to the potential impact of market fluctuations on liquidity.

2. Berachain BYUSD|HONEY (Berachain)

This is a liquidity mining product deployed on the Berachain network. Users need to provide both BYUSD and HONEY stablecoins to the liquidity pool to obtain LP tokens, and then stake the LP tokens in the rewards vault to earn BGT tokens.

The sources of income include BGT token rewards (approximately 3.41% APR) and sharing of transaction fees within the pool (approximately 0.01% APR). BGT is the non-transferable governance token of Berachain, which can be burned 1:1 for BERA tokens and share revenue from multiple core DApps.

Risk Assessment: Low to Moderate. BYUSD and HONEY are both stablecoins, with relatively low price volatility risk. The consensus mechanism of Berachain has undergone professional auditing, and the smart contract risk is relatively low. However, BGT rewards may fluctuate due to governance decisions, and investors need to pay attention to this.

3. Providing Liquidity for Uniswap V4 USDC-USDT0 (Uniswap V4)

This is a product that provides USDC-USDT liquidity for Uniswap V4 on the Ethereum network. Users can deposit USDC or USDT to participate in liquidity mining.

Uniswap V4 introduces the "hook" mechanism, allowing developers to customize pool functions such as dynamic fee adjustments and automatic rebalancing, which is expected to enhance capital efficiency and yield potential.

The revenue mainly comes from UNI token incentives.

Risk assessment: Low to moderate. USDC/USDT is a stablecoin pair, with lower price fluctuation risk. However, investors need to be aware of smart contract risks, as well as the possibility of reduced returns after the incentive period ends.

4. Echelon Market USDC (Aptos)

This is a decentralized lending market product deployed on the Aptos network. Users can deposit USDC to participate in supply and earn real-time accumulated returns.

The sources of income include USDC supply interest (approximately 5.35%) and Thala protocol's thAPT rewards (approximately 3.66%). thAPT is Thala's deposit certificate, which can be exchanged for APT tokens at a 1:1 ratio.

Risk Assessment: Low to Moderate. USDC has a high level of stability, but investors need to pay attention to the smart contract risks of the Aptos ecosystem, as well as the impact of thAPT redemption fees on returns. The instant withdrawal feature offers high liquidity, but market volatility may affect the value of thAPT rewards.

Summary

During times of market volatility, low-risk stablecoin yield products can provide a certain level of stability to an investment portfolio. The four products mentioned above each have their own characteristics, and investors can choose based on their own needs and risk preferences. It is important to note that even low-risk products carry some level of risk, and investors should fully understand the product characteristics and potential risks before making decisions. At the same time, it is also important to closely monitor market trends and policy changes, adjusting investment strategies in a timely manner.