Lending
What is Tangem Yield Mode?
Tangem Yield Mode is a built-in feature in the Tangem app that allows you to earn yield on your crypto directly from your self-custodial wallet.
It integrates with the Aave decentralized finance (DeFi) protocol, enabling you to lend assets and earn interest while retaining complete control over your private keys.
How does Tangem Yield Mode work?
When you want to generate yield on an asset, you deploy your Yield mode (once per blockchain), permit it to manage the token you wish to generate yield on, and it initiates the first token supply to Aave.
Afterward, whenever funds arrive in your wallet on that blockchain, Tangem’s smart contract automatically supplies them to Aave.
Are my funds locked when generating yield?
No. One of the biggest advantages of Tangem Yield Mode is complete liquidity. You can withdraw your assets and any accumulated yield at any time. You can also send, swap, or sell tokens instantly anytime you want while your assets are in Yield Mode.
Aave’s liquidity pools are designed for instant access, and Tangem’s integration ensures immediate withdrawals whenever you choose to exit.
Who is Aave and why is it used in Tangem Yield Mode?
Aave is one of the most reputable and secure DeFi protocols in the crypto ecosystem. Founded in 2017, it operates as an open-source, non-custodial liquidity platform built on Ethereum. Aave manages deposits and loans through smart contracts, allowing anyone to lend or borrow assets transparently and safely.
Today, Aave secures billions of dollars in total value locked (TVL) and is a trusted platform across the DeFi ecosystem.
In Tangem Yield Mode, Aave is the primary yield-generating protocol. When you enable the mode, your chosen assets are supplied directly to Aave’s liquidity pools. From there, they generate yield based on Aave’s variable interest rates, which are determined algorithmically by real-time supply and demand.
Tangem integrates Aave natively, so users don’t have to navigate decentralized apps or manage complex transactions themselves through WalletConnect. Everything happens within the familiar Tangem app interface.
What assets are supported in Tangem Yield Mode?
Tangem Yield Mode supports stablecoins and select tokens compatible with Aave, including USDT, USDC, and DAI, with more assets planned for future updates.
How secure is Tangem Yield Mode?
Like Aave's contracts, Tangem’s smart contract has been audited and is designed for maximum transparency and safety. Read the audit report: Tangem Security Analysis by Pessimistic.
Tangem’s smart contract acts as a transparent bridge between the Tangem Wallet and Aave. It manages:
- Asset routing
- Calculates and distributes yield
- Executes withdrawals
The audit ensures that:
- No one can access or redirect user funds without explicit authorization from the wallet owner.
- All actions on the blockchain are transparent and verifiable, from supplying liquidity to claiming yield.
You can view the smart contract’s source code and compare it with the audited code published in our repository: https://github.com/tangem/tangem-yield-module-contracts.
How do I start earning yield?
To start generating yield on your assets in Tangem:
- Open the Tangem app.
- On the homepage, select a supported token (e.g., USDT, USDC, DAI, or other) and tap Learn more.
- Review the APY and tap Continue.
- Review the network fee and tap Supply assets.
- Scan your Tangem to confirm the transaction.
- Your tokens will be supplied to Aave to begin the yield generation process.
Once your assets are supplied, you’ll see a live section showing your accumulated yield.
What is APY?
APY (Annual Percentage Yield) is the rate of return you generate on your crypto over a year, including the effect of compounding. For example, if a token shows 5% APY, it means that, on average, you could make about 5% more crypto over a year (if the rate stays the same).
APY is always variable and automatically computed by the Aave on-chain smart-contract, based on real-time supply and demand.
What are network fees?
Network fees are blockchain transaction costs required to interact with the Aave protocol. Tangem displays both the current and maximum fees under the fee policy.
The current fee shows what you’ll pay right now.
The maximum fee protects you from situations where the market is highly volatile and network fees are too high. In such scenarios, the funds will be sent to Aave automatically only when network fees fall below the specified maximum fee value.
The system will automatically supply all future top-ups to Aave and deduct the transaction fee in the token. This means that each time you add more tokens to your balance, Tangem’s smart contract will automatically supply it into Aave for you, but it will subtract the network fee first.
What is the minimum top-up?
The system dynamically calculates the minimum top-up amount. If your deposit exceeds the minimum top-up, it will be automatically supplied to Aave. If it’s below the threshold, it won’t be supplied until you add more funds.
Tangem automatically calculates the minimum top-up amount to keep network fees below approximately 4% of the transaction.
This ensures yield generation remains profitable within about one year. On high-fee networks (like Ethereum), making larger top-ups helps reduce the relative cost of fees.
Can I withdraw my funds anytime?
Yes. You can disable the Yield Mode in the Tangem app at any moment to move your assets, and any earned yield, back to your main Tangem wallet balance.
To stop generating yield:
1. Open the Tangem app.
2. On the homepage, select a token (e.g., USDT, USDC, DAI, or other)
3. Tap Yield mode.
4. Tap Disabling yield mode.
5. Tap Confirm.
6. Scan your Tangem to confirm the transaction.
Your assets will instantly return to your Tangem balance, and yield generation will stop.