Tangem Wallet has recently enhanced its features by introducing Aave-backed yield functionality, allowing users to earn returns on popular stablecoins—USDT, USDC, and DAI—directly within the app. This innovation integrates decentralized finance (DeFi) seamlessly into Tangem’s self-custody wallet, ensuring that users maintain control over their private keys while taking advantage of yield opportunities without navigating external applications.
The new feature, dubbed “Yield Mode,” is designed for simplicity. It is activated through a straightforward toggle within the Tangem interface. Once toggled on, the wallet’s secure, audited smart contract will automatically supply the selected stablecoins into Aave’s liquidity pools, enabling users to accrue interest in real time via aTokens. This process is streamlined and user-friendly, resembling traditional banking experiences rather than the often complicated nature associated with DeFi platforms.
Aave, a leading DeFi protocol with over $60 billion in net deposits and $30 billion in loans, plays a fundamental role in this integration. The established liquidity allows Tangem users to earn variable interest rates on their assets, influenced by supply and demand dynamics within Aave’s pools. Notably, users retain full liquidity of their funds, allowing for withdrawals at any time without facing lockup periods or delays.
Security remains a core focus of Tangem’s design. The smart contract involved in the Yield Mode activates only with user approval and is limited to managing the predetermined token for the express purpose of supplying and withdrawing from Aave. Additionally, Tangem records no off-chain data, ensuring that all operations remain closely tied to hardware-based key protection, which simplifies the user experience, particularly for those less familiar with technical intricacies of DeFi.
The introduction of stablecoin yield coincides with a growing trend of incorporating stablecoins into consumer applications and payment systems. Throughout the year, Tangem has expanded its features, including support for staking across major networks, cross-chain swaps, and a virtual payment solution scheduled for launch later in December. This evolution positions the Tangem Wallet not only as a secure storage solution but also as a versatile tool for users seeking to maximize the productivity of their assets while upholding the principles of self-custody.
Looking ahead, Tangem plans to broaden its offerings further, potentially supporting additional assets and networks as it moves toward a more comprehensive “neobank-style” experience for its users.
