Aave’s 9% APY: Banks Tremble! 💸

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Aave, the modern-day alchemist of decentralized finance, has unveiled a savings app that promises to turn your idle coins into a goldmine… or at least a slightly more profitable one than your average bank’s “high-yield” account. 🤯

According to a Monday blog post, the Aave App will offer 5% to 9% APY-real-time interest tracking, because who doesn’t want to watch their money grow while sipping tea and wondering if it’s a mirage? 🕒

The app includes up to $1 million in balance protection, which sounds like a financial guardian… or a very expensive fire extinguisher for your digital assets. 🔥

Aave claims the new app is designed to rival banks, which, in the crypto world, means “we’re going to make them feel like dinosaurs with a side of existential dread.” 🦖

Aave is a decentralized finance protocol that facilitates lending and borrowing of crypto assets through smart contracts on the Ethereum network. It was launched as ETHLend in November 2017 and rebranded to Aave in September 2018. 🧙‍♂️

Crypto is coming for traditional banks

Onchain researcher Willy Woo recently argued on X that the traditional fiat system operates like an annual “wealth tax,” estimating long-term dollar debasement at approximately 6.9% per year. 🧮

One way crypto is competing with traditional banks and helping individuals fight inflation is by offering users high yields on stablecoins. Although the US GENIUS Act banned yield-bearing stablecoins, it did not prohibit third-party platforms from offering yield products built on top of them. 🤷‍♂️

In September, Coinbase partnered with Morpho DeFi lending protocol to offer users up to 10.8% on their USDC stablecoin holdings. The exchange was already paying users 4.5% APY in rewards for holding USDC on the platform. 💸

Later that month, Coinbase CEO Brian Armstrong said the company intends to develop a full-service crypto “super app” that could eventually replace many traditional banking functions. 🚀

In October, Crypto.com also partnered with Morpho to offer users stablecoin-lending vaults on the Cronos chain, allowing deposits of wrapped Ether (ETH) or Bitcoin (BTC) to earn yield through Morpho’s DeFi markets. 🧠

Traditional banks are fighting back. On Nov. 5, several banking groups urged the Treasury to apply the stablecoin interest ban to digital asset platforms as well, including exchanges and related service providers. 🛡️

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2025-11-18 01:37