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Tangem has rolled out a major update to its wallet app — Yield Mode.

Until now, most hardware wallets focused on one thing: secure storage.
You held your seed or card, your keys were safe — but your coins were basically just “sleeping”. If you wanted to earn yield, you had to go to third-party services or DeFi apps.

Yield Mode changes this pattern.

Now you can:

• keep your private keys on a Tangem card;
• connect selected assets to a DeFi protocol and earn yield;
• manage everything from a single app interface.

The idea is simple: keep the security level of a cold wallet, but add DeFi yield — without turning it into a quest with ten tabs and a dozen manual transactions.

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AI-style quick summary

• Yield Mode lets you earn yield on stablecoins directly from Tangem Wallet without giving your keys to third parties.
• Aave is used as the DeFi protocol for generating yield.
• Deposits and withdrawals go through an audited Tangem smart contract; assets are not locked.
• There is a transparent fee model: network fee, top-up fee and a dynamic minimum top-up amount (aimed at keeping network fees around 4% or less of the deposit).

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Introducing Yield Mode

For years, wallets mostly solved one problem: keeping assets safe. You own the card or seed phrase, your keys stay with you — and that’s it.

Yield Mode changes this:

• you still control your keys on a Tangem card;
• at the same time, selected assets can be connected to a DeFi protocol and start earning yield;
• all actions are managed from one interface inside the Tangem app.

In other words, Tangem tries to combine the simplicity of a regular wallet, the security of hardware storage, and the earning potential of DeFi — without pushing you into centralized platforms or complex on-chain flows.

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What is the Yield Mode?

Yield Mode is a built-in mode in the Tangem Wallet app that allows you to connect safely to a DeFi protocol and supply your assets there to generate yield.

When you configure this mode for a specific token:

• the selected coins are sent to the protocol’s smart contracts;
• at the same time, your private keys still remain on the Tangem card;
• the protocol uses your funds in liquidity pools, and you receive yield on your share.

You decide which assets and which networks participate in Yield Mode. Everything else — routing, yield calculation, balance updates — is handled by Tangem’s and Aave’s infrastructure.

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Who is Aave?

Aave is one of the oldest and most respected protocols in the DeFi world.

Key points:

• it has been operating since 2017 as an open-source, non-custodial liquidity platform;
• it is built on Ethereum and other networks;
• it lets anyone deposit assets into a pool (lend) or borrow them (with collateral), without banks;
• all the rules are encoded in smart contracts that transparently live on the blockchain.

In the context of Yield Mode, Aave is the main source of yield: when you enable the mode, your tokens are placed into its liquidity pools. The interest rate (APY) is calculated algorithmically and changes depending on current demand and supply in the protocol.

An important advantage of Aave, and the basis for Yield Mode, is that funds in the pools are not locked for a fixed term. This makes it possible to combine yield and fast access to funds.

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How the Tangem Yield Mode Works

Previously, Tangem users could connect to Aave via WalletConnect: open Aave’s site, connect the wallet, grant approvals, manually supply and withdraw assets. It worked, but it was inconvenient — especially if you topped up tokens from time to time.

The new mode solves this problem:

• all actions move into the Tangem Wallet interface;
• a dedicated Tangem smart contract handles the interaction with Aave;
• top-ups and withdrawals follow a predictable, clear scenario.

When you want to enable Yield Mode for a specific asset:

1. A yield-mode smart contract is deployed on the required network (once per blockchain).
2. You give the contract permission to work with the chosen token only for the purpose of generating yield.
3. The contract sends the first portion of tokens to Aave and records your share of liquidity.
4. All subsequent deposits of this token to your wallet on the same network can be automatically supplied to Aave.

If a critical vulnerability or issue appears on Aave’s side, Tangem’s backend can initiate an emergency withdrawal of funds back to your address to reduce risk.

Access your funds anytime

One of the main advantages of Yield Mode is full liquidity:

• assets are not “frozen” for fixed terms;
• Aave’s liquidity pools are designed to provide almost instant exit under normal conditions;
• you can send, receive and swap assets even while they are in Yield Mode — under the hood, the system simply rebalances between your address and the pool.

Audited and secure smart contracts

The “Tangem ↔ Aave” link is implemented through a separate Tangem smart contract:

• it routes assets between the wallet and the protocol;
• keeps records of deposited funds and accrued yield;
• executes withdrawals when you disable Yield Mode or send tokens out.

This contract has passed an independent security audit. The goal of the audit is to ensure that:

• no funds can be moved without the wallet owner’s signature;
• the logic of deposit, withdrawal and yield distribution works correctly;
• all actions are transparently tracked on the blockchain.

The contract code and the audited version are available in Tangem’s public repository, so you can verify that the deployed contract matches what auditors reviewed.

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How to start generating yield on your assets in Tangem

Below is the practical, step-by-step scenario for enabling Yield Mode for a stablecoin.

1. Choose a supported token

On the home screen, open any token that supports Yield Mode (for example, USDT, USDC, DAI) and tap “Learn more”.

2. Check APY and accept the terms

On the next screen, you’ll see the current APY and a short description of the mode.
Tap “Continue” to confirm that you accept the terms of use.

3. Understand what APY means

APY (Annual Percentage Yield) is annual yield including compound interest.

If you see “5% APY”, it means that — if the rate stayed the same — your balance in this asset could grow by roughly 5% over a year. In DeFi, the rate is not fixed: it can go up or down depending on market activity and protocol parameters.

4. Check the network fee and tap “Supply assets”

The app shows the network fee you need to pay to activate the mode.
Tap “Supply assets” to proceed with sending tokens to Aave.

5. Look at the fee policy and maximum fee

Any blockchain transaction has a network fee — a payment to validators.

In the fee policy section, you will see:

• the current network fee;
• a maximum fee value — if actual fees go above this threshold, the system will not automatically send funds to Aave.

If the network is congested and fees spike, tokens will only be supplied to Aave once the fee drops below the configured limit.

6. Automatic supply of future top-ups and the top-up fee

After the first supply of tokens to Aave, the smart contract takes over the rest:

• every future deposit of this token on the same network can be automatically supplied into Aave;
• before sending to the pool, the contract charges a top-up fee in the token itself (for example, in USDT rather than ETH).

So each time you add USDT to your wallet, Tangem’s smart contract will automatically supply it to Aave, but it will first deduct a portion of the amount to cover gas fees paid earlier.

What does “minimum top-up amount” mean?

For each top-up, the network charges a transaction fee.
If you add a very small amount, the fee can become too large a share of the deposit — which is simply not profitable.

That’s why the app shows a minimum recommended top-up amount. It is chosen so that:

• the network fee is roughly no more than 4% of the amount you send;
• the mode remains economically sustainable and does not “eat” the deposit with fees;
• after about a year of operating under these rules, the user still has a positive result after transaction costs.

This number is dynamic and changes together with current network fees.

On some blockchains (for example, Ethereum), gas is expensive by design, so even 4% can feel noticeable. The easiest way to reduce the relative loss is to top up larger amounts less often, so the same absolute fee is spread over a bigger deposit.

Example:
If you top up $100 USDT, and the effective network fee for this operation is $1.45, then:

• about $1.45 actually pays for the transaction;
• around $98.55 really ends up in Aave and starts earning yield.

7. Start generating yield

After you confirm the transaction, your tokens are supplied to Aave. From that moment, yield accrual in Yield Mode begins.

8. Track your accumulated yield

Once the asset is working in Aave, the app shows a dedicated block with your current yield.

The interface may show contextual banners — for example, if yield accrual is temporarily delayed or if on-chain data is being synced — so you understand what is happening “under the hood”.

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How to withdraw your assets anytime

Exiting Yield Mode is just as simple as entering:

1. Open the Tangem app.
2. On the home screen, select the token for which Yield Mode is enabled.
3. Go to the Yield Mode section for this asset.
4. Tap “Disable Yield Mode”.
5. Confirm the action by tapping your Tangem card to sign the transaction.

After the transaction is confirmed on the blockchain:

• your tokens are returned from Aave to your main Tangem balance;
• yield accrual stops;
• you can freely send, receive and swap the asset as usual.

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How Yield Mode compares to traditional interest-yielding services

Tangem effectively offers a “be your own bank” model: the wallet is an interface to DeFi, not another custodian.

Comparison by key parameters:

Parameter	Yield Mode in Tangem	Classic deposits / CeFi services
Storage	Full self-custody, keys on the user’s card	Funds controlled by a bank or platform
Access	Almost instant, global, 24/7	Limited by working hours and regulation
Transparency	All operations on-chain, smart contracts public	Yield mechanics hidden in internal reporting
Type of yield	Yield from DeFi lending (Aave)	Centralized interest, often relatively low
Control of actions	All critical operations confirmed with the card	Requires trust in the provider’s infrastructure
Typical APY	Variable, depends on protocol and market	Often <2% per year on “safe” instruments

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Conclusion

By integrating Aave into its own infrastructure, Tangem combines the security of a hardware wallet with DeFi opportunities:

• you see exactly where funds are sent;
• you know which protocol generates yield;
• you can enter and exit the mode with a few taps in the app, without complex dApp interfaces or external browsers.

This is a way to earn yield on stablecoins at the level of “DeFi veterans”, while staying in the familiar Tangem interface.

You can read Tangem’s original article with screenshots and illustrations here:

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• store stablecoins and other crypto securely on a hardware wallet;
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