Aave has launched a new savings app with high yields and real-time interest display.
According to the project’s blog, users will be able to earn from 5% to 9% per year. Earnings are visible immediately in the interface. The app offers protection for funds up to one million dollars, the ability to set up auto-replenishment, and to estimate potential earnings.
You can top up your account via thousands of banks, with a debit card, or using supported stablecoins. Withdrawals are instant, with no waiting. A waitlist for early access is now open.
At Aave they say the app is being created as an alternative to banks and traditional savings services, where rates rarely exceed 4% and barely protect against inflation.
Aave itself is a DeFi protocol based on Ethereum. It appeared back in 2017 under the name ETHLend, and a year later changed its name and became the Aave we know today.
Why crypto is becoming a real alternative to banks
On-chain analyst Willy Woo recently stated on X that the fiat system essentially works as an annual ‘wealth tax’. According to his estimate, the dollar depreciates by about 6.9% per year, and from 2020 to 2022 the money supply grew by 40% due to measures during COVID-19.
Also read: Santiment records historic trader losses and extreme buy zones
One way the crypto market competes with banks and helps users fight inflation is through high yields on stablecoins. Although in the US the GENIUS law banned the issuance of yield-bearing stablecoins, it does not restrict third-party platforms that can create yield products based on them.
In September, Coinbase partnered with the DeFi protocol Morpho to offer yields up to 10.8% on USDC. Before that, the exchange already paid users 4.5% per year for holding stablecoins on the platform.
At the end of the same month, Coinbase CEO Brian Armstrong announced that the company plans to create a full-fledged crypto app capable of replacing many functions of traditional banks.
In October, Crypto.com also partnered with Morpho and launched stablecoin vaults on the Cronos network. Users can deposit wrapped ETH or BTC and earn income through DeFi markets on Morpho.
Also read: BNB updates November lows and consolidates below $900
Banks are not giving up. On November 5, several major banking associations appealed to the US Treasury to extend the ban on paying interest on stablecoins not only to the tokens themselves but also to crypto platforms, including exchanges and related services. This is an attempt to stifle competition while traditional players can still dictate the rules.
