CMC News

#Aave Launches Retail Savings App Offering up to 9% APY

Aave unveiled a new savings app targeting retail users with deposit options offering 5% to 9% annual percentage yield and real-time interest tracking. The #DeFi protocol aims to compete directly with traditional banks and mobile savings tools that typically offer rates from 0.4% to 4% APY.

The Aave App includes up to $1 million in balance protection and supports recurring deposits with instant withdrawals and no waiting periods. Users can model potential earnings before committing funds.

The app accepts deposits from thousands of banks, debit cards and supported stablecoins. A waitlist is currently open for early access. #Aave argues traditional high-yield accounts barely keep up with inflation. The protocol launched as ETHLend in November 2017 and rebranded to Aave in September 2018. It facilitates lending and borrowing of crypto assets through smart contracts on the $ETH network.

On-chain researcher Willy Woo recently argued on X that the traditional fiat system operates like an annual wealth tax. He estimated long-term dollar debasement at approximately 6.9% per year and pointed to a 40% increase in the money supply from 2020 to 2022 during the COVID-19 period.

Coinbase partnered with Morpho DeFi lending protocol in September to offer users up to 10.8% on their $USDC holdings. The exchange was already paying users 4.5% APY in rewards for holding $USDC on the platform. Coinbase CEO Brian Armstrong said the company intends to develop a full-service crypto super app that could eventually replace many traditional banking functions.