AAVE -15.07% in 7 Days as New Retail Savings App Launched to Challenge Banks

On November 18, 2025, Aave (AAVE) has launched a retail savings app offering up to 9% APY to directly compete with traditional banks. The app is designed to provide higher-yield deposit options and real-time interest tracking for everyday users, aiming to bridge the gap between DeFi and mainstream finance. Aave’s announcement marks a strategic shift toward consumer-friendly financial tools, leveraging its infrastructure on Ethereum.

The app allows users to deposit funds via bank accounts, debit cards, or stablecoins and features instant withdrawals with no waiting periods. Aave also provides up to $1 million in balance protection and allows users to model potential earnings, reinforcing its position as a secure and accessible option for retail users. The waitlist for early access is currently open, indicating strong initial interest.

Aave’s move aligns with a broader trend of DeFi protocols expanding into neobank-like services. The app’s APY range of 5% to 9% significantly outpaces the typical 0.4% to 4% offered by high-yield savings accounts at traditional institutions. Stani Kulechov, Aave’s CEO, emphasized that the app is built to simplify DeFi for mainstream users, eliminating the need for crypto wallets or technical knowledge.

Security remains a central focus for Aave. The protocol has not experienced any exploits in its five-year history, with multiple audits backing its codebase and economic model. Kulechov stressed the dual layers of security—market economics and code integrity—as key differentiators for the Aave app.

The product is part of Aave’s broader strategy to become a full-stack financial platform. In October, the company acquired Stable Finance, a consumer-focused fintech firm, to accelerate development of user-centric DeFi products. Mario Baxter Cabrera, founder of Stable Finance, will now serve as Aave Labs’ Director of Product, bringing his team into the fold.

Despite the launch of the app, Aave’s token price has continued its downward trend, with a 15.07% drop in the past week. Over the last month, the token has fallen 26.11%, and it has declined 45.34% year-to-date. These figures reflect broader market conditions rather than a direct response to the app’s launch, which represents a longer-term strategic move.

The Aave app is currently exclusive to iOS users, with Android and web versions noted as “coming soon.” The app also features compound interest that accrues every second, a technical advantage over traditional savings accounts and many DeFi platforms that compound interest daily or monthly.

In the broader market, the Aave app’s launch coincides with increasing competition from other DeFi and traditional fintech players. Platforms like Coinbase and Crypto.com have also introduced high-yield savings products, while JPMorgan and Stripe continue to integrate blockchain-based solutions.

Aave’s expansion into consumer finance signals a maturation of the DeFi space, where platforms are no longer solely serving crypto-native users but are now competing with traditional financial institutions for the everyday consumer. The success of the Aave app will likely depend on its ability to maintain security, offer competitive yields, and continue simplifying the user experience.