Stablecoin Investment Strategy: A Rational Choice to Tackle Market Fluctuation

In April 2025, the global financial markets experienced severe turmoil due to Trump's tariff policy. He announced the implementation of "reciprocal tariffs" on major trading partners, imposing higher rates on countries like China. These policies led to a significant decrease in the market value of the S&P 500 in the short term, with Bitcoin prices experiencing drastic fluctuations. Federal Reserve Chairman Powell stated that tariffs could drive up inflation and suppress growth, but the Fed would focus on long-term data rather than intervening in the market through interest rate cuts. Several investment banks raised the probability of a recession in the US.

In this uncertain market environment, how should investors respond? Low-risk yield products based on stablecoins may be a good choice, providing relatively stable returns during turbulent times. This article will introduce four yield products based on stablecoins for investors' reference.

It should be noted that this article is for reference only and does not constitute investment advice. Investors should make prudent investment decisions based on their own circumstances and risk tolerance.

Spark Saving USDC ( Ethereum )

Investors can deposit USDC through the Spark platform to participate in savings. The product's returns come from the Sky savings interest rate (SSR), supported by income generated from cryptocurrency collateral loan fees, U.S. Treasury investments, and liquidity provided to SparkLend, among others. USDC is exchanged for USDS at a 1:1 ratio through Sky PSM and deposited into the SSR vault to earn returns, while the value of sUSDC tokens increases with the accumulation of returns.

Risk assessment: Low. USDC's stability is high, and Spark has undergone multiple audits, reducing the risk of smart contracts. However, investors still need to pay attention to the potential impact of market fluctuations on liquidity.

Berachain BYUSD|HONEY (Berachain)

Investors can provide liquidity for the BYUSD/HONEY liquidity pool on Berachain's native DEX BEX. HONEY is Berachain's native stablecoin, while BYUSD is another stablecoin on the chain. 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 of the core dApp.

Risk assessment: Low to moderate. BYUSD and HONEY, as stablecoins, have lower price fluctuation risks. Berachain's PoL mechanism has undergone multiple audits, and the smart contract risk is low. However, BGT rewards may fluctuate due to emission adjustments.

Uniswap V4 USDC-USDT0 Liquidity Pool (Uniswap V4)

Investors can provide liquidity for the USDC/USDT pool of Uniswap V4 through the Merkl platform. 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.

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

Echelon Market USDC (Aptos)

Investors can deposit USDC on the Echelon Market platform to participate in supply. This product is integrated with the Thala protocol, which provides stablecoins and liquidity layers on Aptos. Earnings include interest from USDC supply and Thala's thAPT rewards. thAPT is Thala's deposit certificate, which can be exchanged for APT at a 1:1 ratio.

Risk Assessment: Low to Medium. 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 Fluctuation may affect the value of thAPT rewards.

Summary

During periods of market turbulence, stablecoin investment products can provide investors with a relatively safe haven. 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 certain risks, and investors should fully understand the product characteristics and potential risks before making decisions. At the same time, closely monitoring market dynamics and timely adjusting investment strategies is also crucial.