Aave (AAVE), the largest decentralized crypto lending platform, is rolling out a “savings account”-style consumer yield app, first opening a waitlist on the Apple App Store.
With the Aave app, users will be able to earn up to 6.5% annualized yield, higher than money market funds, by leveraging Aave’s infrastructure lending protocol, and will be able to deposit funds from bank accounts, debit cards or stablecoins, according to a blog post published Monday. It also offers “balance protection” on deposits up to $1 million.
Aave’s move is part of a broader trend of decentralized finance (DeFi) crypto projects branching out to offer neobank-like products directly to consumers. Staking protocol Ether.fi (ETHFI) introduced an Amex-like payment card product and other financial services, while Ethereum layer-2 Mantle recently launched its UR neobank app offering Swiss bank accounts.
Retail crypto yield platforms, which became popular during the 2020-21 crypto bull cycle, suffered a significant setback following the dramatic booms of centralized lending platforms such as Celsius and Block.fi in 2022, portending a harsh crypto winter.
Aave’s expansion comes after it acquired San Francisco-based fintech company Stable Finance last month to develop a consumer savings app. Aave has amassed $70 billion in deposits and has 2.5 million users, the blog says.
