Wow the largest decentralized crypto-lending platform, is rolling out a “savings account”-like consumer returns app that opens the waiting list on Apple’s App Store first.
With the Aave app, users will be able to earn up to 6.5% annual returns, higher than money market funds, by leveraging Aave’s infrastructure lending protocol and can deposit funds from bank accounts, debit cards or in stablecoins, according to a blog post on Monday. It also offers “balance protection” on deposits up to $1 million.
Aave’s move fits into a broader trend of decentralized finance (DeFi) crypto projects branching out to offer neobank-like products directly to consumers. Postponement protocol introduced an Amex-like debit card product and other financial services, while Ethereum layer-2 Mantle recently launched its neobank app UR, offering Swiss bank accounts.
Retail crypto yield platforms, which became popular in the 2020-21 crypto bull cycle, suffered a major setback after the spectacular explosions of centralized lending platforms such as Celsius and Block.fi in 2022, heralding a severe crypto winter.
Aave’s expansion comes after it bought San Francisco-based fintech company Stable Finance last month to develop a consumer savings app. Aave has collected $70 billion in deposits and boasts 2.5 million users, the blog post says.
