A Robust Choice During Market Turmoil: Four Low-Risk Stablecoin Yield Products

Recently, global financial markets have become more volatile, and investors are facing many uncertainties. In this context, low-risk stablecoin yield products have become a focal point for many. This article will introduce four types of yield products based on stablecoins, providing investors with robust options during turbulent times.

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

Spark Saving USDC (Ethereum)

Users can deposit USDC into the Spark platform to participate in savings. The product’s returns mainly come from the Sky Savings Rate (SSR), supported by income from cryptocurrency collateral loan fees, U.S. Treasury investments, and providing liquidity to other platforms. USDC is exchanged for USDS at a 1:1 ratio through Sky PSM, deposited into the SSR treasury to earn returns, and the value of the sUSDC token increases as returns accumulate.

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

Berachain BYUSD|HONEY (Berachain)

This is the BYUSD/HONEY liquidity pool deployed on the native DEX of Berachain. Users earn LP tokens by providing liquidity, which can be staked to earn rewards in the treasury. The earnings mainly come from BGT rewards and transaction fees within the pool. BGT is Berachain’s non-transferable governance token, which can be burned 1:1 for BERA, and share in the revenue from core dApps.

Risk Assessment: Low to Moderate. BYUSD and HONEY are stablecoins with relatively stable prices. Berachain’s PoL mechanism has been audited, and the risk of smart contracts is low. However, BGT rewards may fluctuate due to emission adjustments.

Provide Liquidity to Uniswap V4 USDC-USDT0 (Uniswap V4)

Through the Merkl platform, users can deposit USDC or USDT into the USDC/USDT pool of Uniswap V4 to provide liquidity. Uniswap V4 introduces a “hook” mechanism that allows developers to customize pool functions, such as dynamic fee adjustments and automatic rebalancing, enhancing capital efficiency and yield potential.

Source of income: Mainly from UNI token incentives.

Risk Assessment: Low to Moderate. The USDC/USDT pool is a stablecoin pair with relatively low price volatility risk. However, it is important to note the risks associated with smart contracts and the potential decrease 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 allows users to deposit USDC into the liquidity pool of the Aptos mainnet and receive supply certificates, with earnings accumulating in real-time. Echelon Market is integrated with the Thala protocol, offering additional thAPT rewards.

Source of income: includes USDC supply interest and Thala’s thAPT rewards. thAPT is Thala’s deposit certificate, minted and exchanged at a 1:1 ratio for APT.

Risk assessment: Low to moderate. USDC has high stability, but attention should be paid to the smart contract risks in the Aptos ecosystem and the impact of thAPT redemption fees on returns. Instant exit provides high liquidity, but market volatility may affect the value of thAPT rewards.

Summary

During periods of market turbulence, these low-risk stablecoin yield products provide investors with relatively safe options. They each have their own characteristics and cover different blockchain ecosystems. Investors can choose suitable products for allocation based on their own needs and risk preferences to seek stable returns in a volatile market. However, even low-risk products carry potential risks, and investors should cautiously evaluate and continuously monitor market changes.