Financial market turmoil, stablecoin yield products become a safe haven

In April 2025, the global financial markets experienced severe turbulence. A series of tariff policy adjustments triggered panic among investors, leading to a significant drop in the stock market. The S&P 500 index evaporated $5.8 trillion in market value in just four days, marking the largest single-week decline since the 1950s. The cryptocurrency market was similarly affected, with Bitcoin's price fluctuating dramatically between $80,000 and $90,000.

In the face of such a turbulent situation, Federal Reserve Chairman Powell stated at the Chicago Economic Club that although tariff policies may push up inflation and suppress economic growth, the Federal Reserve will not easily intervene in the market by lowering interest rates. He emphasized that the central bank's policy-making will continue to focus on long-term economic data.

In this environment of increasing uncertainty, how should investors respond? Diversifying investment portfolios and seeking relatively stable sources of returns have become particularly important. Low-risk stablecoin yield products in the decentralized finance (DeFi) space may provide investors with a temporary safe haven to help them weather this turbulent period. Below are four stablecoin-based yield products for investors' reference.

Spark Saving USDC ( Ethereum )

This is a stablecoin storage product based on Ethereum. Users can deposit USDC to earn yields. The yields primarily come from the Sky Savings Rate (SSR), which is generated by activities such as cryptocurrency collateral loan fees, U.S. Treasury investments, and providing liquidity to other DeFi platforms. The USDC deposited by users will be exchanged for USDS at a 1:1 ratio through Sky PSM, and then deposited into the SSR vault to earn yields. Over time, the value of the sUSDC tokens representing users' deposits will gradually increase.

Risk assessment: Low risk. USDC, as a mainstream stablecoin, has a high level of stability. This product has undergone multiple audits, reducing the risk of smart contracts. However, investors still need to pay attention to the potential impact of market volatility on liquidity.

Berachain BYUSD|HONEY (Berachain)

This is a liquidity pool product deployed on Berachain. Users need to provide both BYUSD and HONEY stablecoins as liquidity. In return, users can receive LP tokens and can stake them to earn BGT rewards.

The sources of income include BGT rewards (annualized yield of about 3.41%) and trading fee sharing (annualized approximately 0.01%). BGT is the non-transferable governance token of Berachain, which can be burned at a 1:1 ratio for BERA tokens, and enjoys a share of the fee revenue from the platform's core applications.

Risk Assessment: Low to medium risk. BYUSD and HONEY are both stablecoins, with relatively low price volatility risk. The consensus mechanism of Berachain has been audited by a third party, and the smart contract risk is low. However, BGT rewards may fluctuate due to governance decisions.

Uniswap V4 USDC-USDT0 Liquidity Pool (Uniswap V4)

This is a USDC/USDT liquidity pool on the Uniswap V4 platform. Investors can participate in the liquidity provision of this pool through the Merkl platform. Uniswap V4 introduces a "hook" mechanism that allows developers to customize pool functions, such as dynamically adjusting fees and automatic rebalancing, with the hope of improving capital efficiency and yield potential.

The main source of income is the UNI token incentives.

Risk Assessment: Low to moderate risk. USDC and USDT are mainstream stablecoins with relatively low price volatility risk. However, investors need to be aware of smart contract risks and the possibility of decreased returns after the incentive period ends.

Echelon Market USDC (Aptos)

This is a USDC deposit product based on the Aptos blockchain. Users can deposit USDC into the funding pool of the Aptos mainnet, participate in supply, and earn returns. This product is integrated with the Thala protocol, which provides stablecoin and liquidity layer for Aptos.

The sources of income include USDC supply interest (annualized 5.35%) and Thala's thAPT rewards (annualized 3.66%). thAPT is Thala's deposit certificate, which can be exchanged for APT at a 1:1 ratio, but a fee of 0.15% is required upon redemption.

Risk Assessment: Low to Moderate Risk. The stability of USDC is relatively high, 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. This product offers instant exit options, has good liquidity, but market volatility may affect the value of thAPT rewards.

Summary

In the current turbulent market environment, the stablecoin yield products introduced above may provide investors with a relatively safe option. Most of these products are based on mainstream stablecoins, with lower price volatility risks, while offering varying degrees of returns. However, investors still need to carefully assess the characteristics and potential risks of each product, and make decisions based on their own risk tolerance and investment objectives.

It is important to emphasize that this article is for reference only and does not constitute investment advice. The cryptocurrency market carries a high level of risk, and investors must conduct thorough research and risk assessment. It is recommended to consult a professional financial advisor before making any investment decisions.