Tangem, the Swiss provider of NFC-based hardware wallets, has introduced “Yield Mode”, a new feature that enables users to generate yield on stablecoins directly within the Tangem Wallet app. The integration is built on the Aave Protocol, one of decentralized finance’s (DeFi) largest and most trusted liquidity networks.
The feature bridges self-custody and decentralized yield generation, giving users the ability to earn directly from their secured Tangem wallets without relying on external apps or custodial platforms. According to the company’s official release, assets remain non-custodial and fully under user control at every stage.
Aave integration brings DeFi access inside Tangem wallet
The partnership provides Tangem users with direct access to Aave’s liquidity pools for stablecoins such as USDC and USDT. Aave currently holds over $60 billion in net deposits and manages about $30 billion in active loans, giving users a deep and established liquidity base.
With Yield Mode, users can supply assets to Aave and earn variable yields that fluctuate based on pool activity. Those rates typically fall within the mid-single to low-double digits, reflecting market supply and demand. The Tangem app handles all transactions, from adding to withdrawing, keeping its ecosystem simple and secure at the hardware level.
Tangem confirmed that users can turn on Yield Mode with a single, hardware-secured transaction. Once activated, the wallet’s audited smart contract automates deposits and withdrawals from Aave while updating balances in real time. No external dApps, WalletConnect links, or browser extensions are required.
Security and control remain central
Tangem emphasized that the feature remains non-custodial. Users always retain their private keys on their Tangem cards or rings. The smart contract has been audited and is permissioned only to handle the deposited token for Aave operations, ensuring strict isolation from third-party access.
“Our users trust us to keep their assets secure, but they've been waiting for a way to put those assets to work,” said Andrey Lazutkin, CTO at Tangem. “We've now delivered that by building a seamless experience of a neobank that connects them to Aave’s onchain yield—something traditional finance simply can't offer.”
Funds supplied through Yield Mode are never locked. Tangem users can send, swap, or withdraw both principal and earned yield instantly. The process mirrors mobile banking functionality but maintains full self-custody, removing the typical complexity of onchain yield generation.
Aave’s reliability supports Tangem’s expansion
Tangem chose Aave for its consistent track record and transparency.
“This integration with Tangem brings together two key building blocks of onchain finance – self-custody and yield,” said Stani Kulechov, Founder of Aave Labs. “It makes earning onchain yield simple and secure, letting users put assets to work while staying fully in control.”
The Aave Protocol’s long-standing performance has built a strong reputation in DeFi. Its open-source architecture, deep liquidity, and rigorous security audits align with Tangem’s philosophy of offering trustless financial utility through hardware-secured products.
Expanding beyond storage to usable onchain tools
The launch follows Tangem’s broader push to evolve its wallet into a more complete self-custody platform with core financial features. The company has been adding support for staking, token swaps, and stablecoin payments across multiple networks.
By integrating Aave yield directly inside its native interface, Tangem enables users to keep assets productive while preserving immediate access. This approach strengthens its positioning as a bridge between institutional-grade security and retail-friendly usability.
Tangem describes the update as a meaningful step toward offering users a neobank-style experience within crypto, one where hardware-based control integrates with liquid, real-time yield.
The feature is now available in the latest Tangem Wallet update.
Comprehensive risk disclosure
While the integration expands accessibility to DeFi yields, users should be aware of the risks inherent in decentralized finance and yield-generating products.
1. Smart contract vulnerabilities – Yield Mode operates through audited smart contracts, but no contract is immune to potential exploitation or unforeseen bugs. A flaw could lead to the loss of deposited assets. Users should acknowledge that audits reduce but do not eliminate these risks.
2. Market volatility – Stablecoin yields depend on supply and demand dynamics within Aave’s liquidity pools, as well as broader crypto market conditions. Interest rates fluctuate and can fall significantly, reducing or even eliminating returns.
3. Potential loss of funds – Although Tangem’s system is non-custodial, users remain responsible for their private keys and transaction approvals. Mismanagement of devices, loss of keys, or security breaches at the protocol level could result in partial or total loss of funds.
4. Regulatory uncertainty – DeFi products operate in a developing regulatory environment. Future laws or restrictions could impact access, taxation, and treatment of yield-generating assets. Users should monitor compliance requirements in their jurisdiction.
5. Variable returns – Aave yields are not fixed or guaranteed. Returns depend on pool utilization, asset supply, and borrowing demand. In extreme cases, aggressive rate shifts or depegging of stablecoins could lead to a reduction in yield or loss of principal.
Tangem and Aave emphasize transparency, but both caution that yield potential is subject to onchain market dynamics and third-party protocol factors beyond their direct control.
Gunel Ismayilova
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