Low-Risk Investment Strategies During Market Turbulence

In April 2025, the global financial markets experienced severe fluctuations. The new tariff policy implemented by the Trump administration triggered widespread economic uncertainty. At the beginning of April, a baseline tariff of 10% was established for major trading partners, with higher rates imposed on specific countries. This move exacerbated tensions in global supply chains, provoking a strong reaction from the markets.

The S&P 500 index has evaporated $5.8 trillion in market value in just four days, marking the largest single-week loss in nearly 70 years. Bitcoin prices have fluctuated significantly between $80,000 and $90,000. Federal Reserve Chairman Powell stated that tariffs could drive up inflation and suppress economic growth, but the Fed will not intervene in the market through interest rate cuts. Several investment banks have raised their expectations for the probability of a U.S. recession.

In this uncertain environment, how should investors respond? Low-risk stablecoin yield products may be a good option. Let's take a look at four types of yield products based on stablecoins.

Spark Saving USDC ( Ethereum )

Users can deposit USDC through the Spark platform to participate in savings. The earnings mainly come from the Sky savings interest rate (SSR), generated from cryptocurrency collateral loan fees, U.S. Treasury investments, and providing liquidity to other platforms. USDC is converted to USDS at a 1:1 ratio through Sky PSM and deposited into the SSR treasury to earn returns, with the value of sUSDC tokens increasing as earnings accumulate.

Risk assessment: Low. USDC has high stability, and Spark has undergone multiple audits, reducing the risk of smart contracts. However, attention should be paid to the potential impact of market volatility on liquidity.

Berachain BYUSD|HONEY (Berachain)

Users can provide liquidity for the BYUSD/HONEY pool on Berachain's native DEX BEX. The earnings mainly come from BGT rewards and a share of the trading fees within the pool. BGT is Berachain's non-transferable governance token, which can be burned 1:1 for BERA, and share the fee revenue from core dApps.

Risk assessment: Low to moderate. BYUSD and HONEY are stablecoins, with relatively stable prices. The PoL mechanism of Berachain has been audited, and the risk of smart contracts is low. However, BGT rewards may fluctuate due to adjustment of emissions.

Uniswap V4 USDC-USDT0 Liquidity Pool

Through the Merkl platform, users can provide liquidity for the USDC/USDT pool on Uniswap V4. Uniswap V4 introduces a "hook" mechanism that allows developers to customize pool functionalities, such as dynamic fee adjustments and automatic rebalancing, enhancing capital efficiency and yield potential.

Risk assessment: Low to moderate. The USDC/USDT pool is a stablecoin pair with lower price volatility risk. However, be aware of smart contract risks and potential decline in returns after the incentive period ends.

Echelon Market USDC (Aptos)

Users can deposit USDC on the Echelon Market platform to participate in supply. This product is integrated with the Thala protocol, offering USDC supply interest and thAPT rewards. thAPT is Thala's deposit certificate, which can be exchanged for APT at a 1:1 ratio.

Risk Assessment: Low to Moderate. USDC has high stability, but attention should be paid to the smart contract risks within the Aptos ecosystem and the impact of thAPT redemption fees on returns. Market volatility may affect the value of thAPT rewards.

Summary

During periods of market turbulence, these low-risk stablecoin yield products may provide investors with a relatively safe haven. However, investors still need to carefully assess the characteristics and potential risks of each product and make informed choices based on their own risk tolerance. Always remember that any investment carries risks, and past performance is not indicative of future returns.