Aave Launches High-Yield Savings App With 9% Interest and $1M Protection

Aave Labs has officially launched a consumer-focused mobile savings app on the Apple App Store, offering up to 9% annual percentage yield (APY) with $1 million in insurance-backed protection per account. The app is designed to simplify access to decentralized finance (DeFi) for mainstream users, eliminating the need for traditional crypto wallets or technical knowledge.

The app allows users to deposit funds via bank accounts or debit cards connected to over 12,000 U.S. institutions and offers unlimited stablecoin transfers. Aave’s 5% base rate can be boosted to 9% through referral programs, automated deposits, and completion of KYC verification. Interest accrues continuously, 24/7, directly through Aave’s lending protocol, where savings are backed by over-collateralized loans.

This move marks a pivotal moment for DeFi as Aave positions itself as a direct competitor to traditional banks and high-yield fintech platforms. The offering comes amid a broader shift in the crypto space, where speculative yield farming has given way to more stable, regulated, and user-friendly products. With the launch of this app, Aave is addressing the need for safer, more accessible on-chain yield options, a strategy that aligns with recent calls from Ethereum co-founder Vitalik Buterin for lower-risk DeFi alternatives.

Aave’s consumer strategy is further supported by its recent acquisition of Stable Finance, a San Francisco-based fintech firm focused on building consumer-facing savings products. The acquisition has accelerated the development of Aave’s polished, neobank-style interface and expanded its capacity to serve a broader audience. Mario Baxter Cabrera, founder of Stable Finance, now serves as Aave Labs’ Director of Product.

The Aave App is underpinned by the Aave protocol, which manages over $70 billion in deposits and serves 2.5 million users. The platform’s lending markets are “over-secured,” meaning borrowers must deposit more collateral than they borrow. This structure gives Aave a compelling value proposition for mainstream users: savings are effectively backed by more than 100% of their value, reducing exposure to smart contract or liquidity risks.

The app also features a waitlist for early access, with the Android version in development. Users can begin by depositing as little as $0.01, with no minimum deposit requirements. This low barrier to entry further enhances the product’s appeal to retail investors and first-time DeFi users.

For the broader market, Aave’s foray into consumer banking could signal a broader trend of DeFi protocols expanding into regulated, mainstream financial products. Other projects, such as ETHFI and Mantle’s UR app, are also introducing neobank-style services. Aave’s approach, however, distinguishes itself with a strong institutional-grade security track record and a user-friendly design that avoids traditional DeFi jargon.

The Aave App’s launch represents a significant step in the evolution of DeFi from niche, technical applications to consumer-grade financial tools. If successful, it could attract capital from outside the crypto ecosystem, increasing on-chain liquidity and solidifying Aave’s role as a foundational infrastructure provider in the DeFi space.