Low-Risk Income Strategies During Market Turbulence

Recently, global financial markets have become more volatile, presenting significant challenges for investors. In this uncertain environment, some low-risk yield products based on stablecoins may become a good option. This article will introduce four such products for investors' reference.

Note: This article is for reference only and does not constitute investment advice. Investors should conduct their own research and bear the risks.

Spark Saving USDC ( Ethereum )

Spark is a decentralized finance platform that offers the blockchain-based liquidity market protocol SparkLend. Users can deposit USDC on the official website to participate in the Savings USDC product.

Source of income: Mainly from Sky savings interest rate ( SSR ), generated by the Sky protocol through cryptocurrency collateral loan fees, US Treasury investments, and providing liquidity to platforms like SparkLend. USDC is exchanged for USDS at a 1:1 ratio through the Sky PSM and deposited into the SSR treasury to earn income, while the value of the sUSDC token increases with the accumulation of earnings.

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

Berachain BYUSD|HONEY (Berachain)

Berachain is a high-performance public chain that adopts the Proof of Liquidity ( PoL ) consensus mechanism. Users can provide liquidity for the BYUSD/HONEY pool on the Pools page of BeraHub, earning LP tokens and staking them to the rewards vault to earn BGT.

Source of income: Mainly includes BGT rewards ( 3.41% APR ) and transaction fees within the pool ( 10.01% APR ). BGT is the non-transferable governance token of Berachain, which can be burned 1:1 for BERA and share the fee income of core dApps.

Risk assessment: Low to moderate. BYUSD and HONEY are stablecoins with low price volatility; Berachain's PoL mechanism has been audited, and the risk of smart contracts is relatively low. However, BGT rewards may fluctuate due to emission adjustments.

Uniswap V4 USDC-USDT0 Liquidity Pool (Uniswap V4)

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

Source of income: UNI token incentives.

Risk assessment: Low to moderate. USDC/USDT is a stablecoin pair with low price volatility, but attention should be paid to smart contract risks and the potential decline in returns after the incentive period ends.

Echelon Market USDC (Aptos)

Echelon Market is a decentralized cryptocurrency market based on the Aptos blockchain. Users can deposit USDC on the official website to participate in supply and earn real-time accumulated rewards.

Source of income: includes USDC supply interest (5.35%) and Thala's thAPT rewards (3.66%). thAPT is Thala's deposit certificate, which can be exchanged 1:1 for APT.

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. Instant withdrawal provides high liquidity, but market volatility may affect the value of thAPT rewards.

Summary

In the current market environment, these low-risk yield products based on stablecoins may provide relatively stable returns for investors. However, investors still need to weigh the risk-return characteristics of each product and choose a strategy that suits them. At the same time, it is also crucial to continuously monitor market dynamics and policy changes.