Overview
Tangem provides self-custodial hardware wallets that allow users to securely store and manage their digital assets. The company combines a physical card (and recently, a ring) with a mobile application to offer a simple and secure way to interact with crypto.
Integrated natively into its wallet, Tangem's new Yield Mode is a feature that provides users with direct access to Aave yield.
Through a direct integration with the Aave Protocol, Tangem users can supply stablecoins like USDT and USDC to Aave's liquidity pools to earn yield. This partnership gives Tangem users a streamlined way to explore yield on their assets without leaving the Tangem app, all without sacrificing the platform's security and simplicity.
Integrating Aave
Why Aave?
Tangem chose Aave for its established presence and reliability. The Aave Protocol provides deep liquidity, a critical factor for a frictionless user experience. Aave's commitment to security, demonstrated through its extensive track record of securing tens of billions of dollars, aligns with Tangem's focus on providing a secure environment for its users. Additionally, the transparent nature of the Aave Protocol gives users confidence in the system's integrity.
How It Works
Tangem's Yield Mode simplifies the process of supplying assets to Aave. Users can activate Yield Mode from within the Tangem app and supply their assets with a few taps.
The integration is native, so users do not need to use external websites, dapp browsers, or WalletConnect. All interactions, from supplying assets to withdrawing them, are handled through the Tangem app's interface.
When a user enables Yield Mode, Tangem's audited smart contract interacts with the Aave Protocol. This smart contract automates the process of supplying and withdrawing assets, and it also handles the calculation and distribution of the earned yield.
The deposit process begins when a user enables Yield Mode and selects an asset to supply. Tangem deploys the Yield Mode smart contract once per blockchain, and the user permits the contract to manage the selected token. The smart contract then supplies the initial tokens to Aave's liquidity pools.
Security and Control
Tangem's integration with Aave is designed to provide users with both security and control over their assets. The Yield Mode is non-custodial, so users retain full control of their private keys, which are stored securely on their Tangem card.
A key feature of the Yield Mode is the complete liquidity it offers. Assets can also be withdrawn directly from the Tangem app. This allows users to send, receive, or swap their assets even while they are generating yield.
Powered by Aave
The integration of Aave into Tangem Wallet through Yield Mode provides a secure and user-friendly way for individuals to access Aave yield. The combination of Tangem's hardware security and Aave's liquidity creates a compelling solution for those looking to explore yield on their assets while maintaining full control over their funds.