Your neighborhood bank might soon face unexpected competition from the blockchain world. Decentralized finance and lending protocol Aave just rolled out a consumer savings application that promises returns that dwarf conventional banking products.
The newly launched Aave App delivers annual percentage yields ranging from 5% to 9%, alongside features including balance protection up to $1 million and real-time interest tracking. Users can connect thousands of bank accounts, debit cards, or stablecoins to fund their accounts, with immediate withdrawal access and no lockup requirements. Early adopters can currently join through a waitlist system.
How Aave Is Better Than The Banks
Aave has positioned the new product as an alternative to traditional banking system, which currently provide 0.4-4% returns, far behind the inflation rates. The application, originally founded as ETHLend in 2017, makes lending and borrowing services possible through Ethereum-based smart contracts.
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The launch reflects broader industry momentum toward competing with conventional financial institutions. Coinbase partnered with Morpho protocol in September to offer 10.8% yields on USDC deposits, and its CEO Brian Armstrong announced plans for a comprehensive crypto banking alternative. Crypto.com followed suit in October with similar Morpho-powered lending products.
