Tangem Yield Mode Update: April Pause Lifted, Service Back to Normal
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Yield Mode is fully back. Activation, manual top-ups, and automatic top-ups were all turned back on in early May, and everything has worked normally since then. You don’t need to do anything. Here’s what happened, for anyone who wants the background.
What happened
In April 2026, an exploit affecting Kelp DAO’s rsETH disrupted several lending pools and sharply increased demand for liquidity. Utilization rates spiked across many pools, including the USDT and USDC pools on Aave that Yield Mode supplies to.
As a result, some users experienced occasional errors with ERC20 transactions involving assets in Yield Mode. This affected swaps, payments from accounts with Yield Mode turned on, and the process of turning the feature off. Funds were never compromised. It was a liquidity issue on Aave’s side, not a problem with Tangem.
Aave was not exploited
The Aave protocol continued to run normally, and no funds or smart contracts were compromised. Aave quickly removed the affected assets from collateral (see their notice on X).
Why some transactions were interrupted
Aave operates lending pools where some users supply assets such as USDT or USDC, while others borrow them. When most of a pool’s supply is borrowed, there’s little left to withdraw, so withdrawals can be limited until borrowers repay or new supply comes in. That’s how lending pools are designed to work, and it’s what happened here for a short while.
What Tangem did
As a precaution, on April 19-20 we temporarily turned off:
- Yield Mode activation for new accounts and tokens
- Manual top-ups into Yield Mode
- Automatic top-ups of incoming assets into Yield Mode
That meant no new funds were added to the pools while liquidity was tight.
Where things stand now
Liquidity on Aave has recovered, and we lifted the pause on May 5, 2026. Since then, Yield Mode has been working as usual:
- You can activate Yield Mode on new accounts and tokens.
- Manual and automatic top-ups are both on.
- Swaps, sends, and turning Yield Mode off work normally.
You can still check live liquidity yourself in the USDC or USDT pools on Aave.
Summary
- On April 19-20, 2026, the rsETH exploit led to high utilization across Aave lending pools.
- Aave itself was not exploited, and no user funds were lost or compromised.
- Tangem paused activation of Yield Mode, manual top-ups, and automatic top-ups as a precaution.
- The pause was lifted on May 5, 2026, and Yield Mode has run normally since.
If you need help, contact support inside the Tangem app.
Yield Mode interruptions FAQ
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Yes. Since May 5, 2026, activation, manual top-ups, and automatic top-ups have all been back on, and transactions work as usual.
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No. The problem was temporary low liquidity in Aave’s pools, not a security issue. Your supplied assets stayed in place and became fully available again once liquidity recovered.
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No. The exploit hit Kelp DAO's rsETH, which disrupted multiple lending pools and spiked demand for liquidity. The Aave protocol operated normally with no compromise of funds or smart contracts, and Aave promptly removed affected assets from collateral.
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When most of the assets supplied to a pool are borrowed, there isn’t enough left for everyone to withdraw at once. Withdrawals free up again as loans are repaid or new supply comes in.
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From April 19-20 to May 5, 2026, we turned off Yield Mode activation, manual and automatic top-ups, so no new funds entered the pools while liquidity was tight.
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