We are currently seeing occasional errors with transactions for assets on the ERC20 network supplied through Yield Mode, affecting swaps, payments from accounts with Yield Mode enabled, and disabling the feature.
Your funds are not compromised; this is a liquidity issue related to high utilization rates in Aave’s lending pools, not with Tangem itself.
What happened
A recent exploit affecting Kelp DAO’s rsETH disrupted multiple lending pools and increased demand for liquidity. This led to high utilization rates across many pools, affecting supplied tokens, including USDT and USDC.
Important: Aave has not been exploited
The Aave protocol is operating normally, and there is no compromise of funds or smart contracts. Aave has promptly removed affected assets from collateral (see notifications on X).
Why transactions may face interruptions
Aave operates several lending pools: Users supply assets (such as USDT/USDC), and others borrow them. When most of the supplied assets are borrowed, liquidity becomes low, and withdrawal of supplied assets may be limited until liquidity improves. This is expected behavior.
What this means for you
If you are using Yield Mode:
You may not be able to swap or send large amounts while liquidity is low.
Disabling Yield Mode may cause occasional errors for large balances.
Smaller transactions may still work depending on available liquidity.
Tangem has also temporarily disabled automatic top-ups for incoming assets into YieldMode and the activation of Yield Mode for new accounts or tokens as a precaution until liquidity improves on Aave.
We'll keep this post updated as the situation develops.
Summary
Aave is working as designed.
No funds are lost or compromised.
Interruptions while using the Yield mode are caused by high utilization after market events
Higher APY reflects increased demand.
Tangem has temporarily disabled new asset supplies to Yield Mode as a precaution.
If you need help, contact support inside the Tangem app.
