Tangem Yield

What is Tangem Yield Mode?

Tangem Yield Mode is a built-in feature in the Tangem app that allows you to earn yield on your crypto directly from your self-custodial wallet. 
It integrates with the Aave decentralized finance (DeFi) protocol, enabling you to lend assets and earn interest while retaining complete control over your private keys.

How does Tangem Yield Mode work?

When you want to generate yield on an asset, you enable Yield mode for that token on the desired network, grant permission for the smart contract to manage that token, and it initiates the first token supply to Aave.

After that, every time you receive or add this token to your wallet, Tangem’s smart contract automatically supplies it to Aave so it can continue generating yield.

Are my funds locked when generating yield?

No. One of the biggest advantages of Tangem Yield Mode is complete liquidity. You can withdraw your assets and any accumulated yield at any time. You can also send, swap, or sell tokens instantly anytime you want while your assets are in Yield Mode.

Aave’s liquidity pools are designed for instant access, and Tangem’s integration ensures immediate withdrawals whenever you choose to exit.

Who is Aave and why is it used in Tangem Yield Mode?

Aave is one of the most reputable and secure DeFi protocols in the crypto ecosystem. Founded in 2017, it operates as an open-source, non-custodial liquidity platform built on Ethereum. Aave manages deposits and loans through smart contracts, allowing anyone to lend or borrow assets transparently and safely.

Today, Aave secures billions of dollars in total value locked (TVL) and is a trusted platform across the DeFi ecosystem.

In Tangem Yield Mode, Aave is the primary yield-generating protocol. When you enable the mode, your chosen assets are supplied directly to Aave’s liquidity pools. From there, they generate yield based on Aave’s variable interest rates, which are determined algorithmically by real-time supply and demand.

Tangem integrates Aave natively, so users don’t have to navigate decentralized apps or manage complex transactions themselves through WalletConnect. Everything happens within the familiar Tangem app interface.

What assets are supported in Tangem Yield Mode?

Tangem Yield Mode supports stablecoins and select tokens compatible with Aave, including USDT, USDC, and DAI, with more assets planned for future updates.

How secure is Tangem Yield Mode?

Like Aave's contracts, Tangem’s smart contract has been audited and is designed for maximum transparency and safety. Read the audit report: Tangem Security Analysis by Pessimistic.

Tangem’s smart contract acts as a transparent bridge between the Tangem Wallet and Aave. It manages:

1. Asset routing 
2. Yield calculation and distribution
3. Withdrawal execution

The audit ensures that:

• No one can access or redirect user funds without explicit authorization from the wallet owner.
• All actions on the blockchain are transparent and verifiable, from supplying liquidity to claiming yield.

You can view the smart contract’s source code and compare it with the audited code published in our repository:  https://github.com/tangem/tangem-yield-module-contracts.

How do I start earning yield?

To start generating yield on your assets in Tangem:

1. Open the Tangem app.
2. On the homepage, select a supported token (e.g., USDT, USDC, DAI, or other) and tap Learn more.
3. Review the APY (Annual Percentage Yield) and tap Continue.
4. Review the network fee and tap Supply assets.
5. Scan your Tangem to confirm the transaction.
6. Your tokens will be supplied to Aave to begin the yield generation process.

Once your assets are supplied, you’ll see a live section showing your accumulated yield. Your balance (e.g., USDT, USDC, or DAI) will show your assets converted into aTokens (e.g., aUSDT, aUSDC, or aDAI), which automatically accrue interest.

What is APY?

APY (Annual Percentage Yield) is the rate of return you generate on your crypto over a year, including the effect of compounding. In other words, interest is calculated not only on the initial amount but also on the interest already earned, allowing your balance to grow faster than with simple interest.

For example, if a token shows 5% APY, it means that, on average, you could make about 5% more crypto over a year (if the rate stays the same).

APY is always variable and automatically computed by the Aave on-chain smart-contract, based on real-time supply and demand.

What are network fees?

Network fee 
The network fee is a standard blockchain transaction fee that the user pays when enabling or disabling Yield Mode. This is a regular fee set by the blockchain itself, not by Tangem. The funds are sent directly to network validators, just like with any other transaction. 

Top-up network fee
The top-up network fee is deducted from the amount being supplied to Aave to cover the network costs that Tangem pays upfront on the user’s behalf. When a user tops up the balance of a supported token in their wallet, the system automatically supplies the funds to Aave. During this process, Tangem pays the network transaction fee (for example, in ETH) in advance so the transaction can be executed. After that, the paid network fee is converted into the same currency the user is supplying (for example, USDT), and the equivalent amount is deducted from the supplied funds. 

Example 

1. A user tops up USDT on the Ethereum network. 
2. To supply these funds to Aave, Tangem must pay a transaction fee in ETH.
3. Tangem pays this ETH fee upfront. 
4. When the USDT is supplied to Aave, Tangem deducts an amount of USDT equivalent to the ETH fee paid.
5. This deducted amount is the top-up fee. 

Maximum fee
The maximum fee is a protection mechanism during periods of high network congestion. Funds will only be supplied to Aave when the network fee falls below the specified limit.

What is the minimum top-up?

The system dynamically calculates the minimum top-up amount. If your deposit exceeds the minimum top-up, it will be automatically supplied to Aave. If it’s below the threshold, it won’t be supplied until you add more funds.

Tangem automatically calculates the minimum top-up amount to keep network fees below approximately 4% of the transaction.
This ensures yield generation remains profitable within about one year. On high-fee networks (like Ethereum), making larger top-ups helps reduce the relative cost of fees.

Can I withdraw my funds anytime?

Yes, you can disable Yield Mode in the Tangem app at any time.

Your funds always remain accessible, even while they are participating in Yield Mode. You can send, swap, or sell your tokens without disabling the mode — yield generation does not restrict how you use your assets.

To stop generating yield:

1. Open the Tangem app. 
2. On the homepage, select a token (e.g., USDT, USDC, DAI, or other) 
3. Tap Yield mode.
4. Tap Disabling yield mode.
5. Tap Confirm.
6. Scan your Tangem to confirm the transaction.

Your assets will instantly return to your Tangem balance, and yield generation will stop.