For a long time self-custody wallets did one job: keep your keys safe. If you wanted your stablecoins to earn anything, you had to send them to an exchange or a lending platform and give up custody to do it.
Yield Mode in the Tangem app changes that. You can now supply stablecoins to the Aave lending protocol directly from a Tangem Wallet or Tangem Ring. No exchange account, no browser extension, no DeFi dashboard, and your private keys never leave the card.
This guide covers how it works, what it costs, how to get in and out, and the one thing New Zealand users should think about before switching it on. If you don’t have a wallet yet, the full range is at tangem.nz.
What Yield Mode is
Yield Mode is a feature built into the Tangem app. When you enable it for a supported stablecoin (USDT, USDC or DAI, depending on the network), that token is supplied to Aave, a decentralised lending pool. Borrowers pay interest to the pool, and you receive a share of it as yield.
Four things are true the whole time it’s running:
- Your keys stay on your Tangem card or ring. Every action still needs a tap.
- Your stablecoins sit in a public, on-chain lending pool, not with a company.
- The rate floats with supply and demand in the pool.
- You can withdraw or turn it off whenever you like. There’s no lock-up period.
Why Aave
Aave launched in 2017 and is one of the oldest and largest lending protocols in DeFi. It’s open source and non-custodial, meaning the smart contracts hold the funds and no person can reach in and move them. It has carried billions of dollars in deposits through several market cycles, which is why Tangem chose it rather than a newer, higher-advertised-rate option.
The practical points for you:
- Every deposit and withdrawal is visible on-chain.
- The pools are deep, so withdrawals normally clear straight away, even in busy markets.
- Tangem’s integration removes the WalletConnect and browser-extension steps you’d otherwise need.
How it works in practice
Using Aave the traditional way means visiting the Aave site, connecting your wallet, approving the token, supplying funds, and repeating the last two steps every time you top up.
With Yield Mode the flow is:
- Enable Yield Mode on the token you want to earn on.
- Approve Tangem’s smart contract to handle that token. This is a one-off, signed with your card.
- Your current balance is supplied to Aave.
- Any future deposits of that token on that network are supplied automatically.
- Withdraw or disable Yield Mode at any time.
Your balance stays usable
Unlike a centralised earn product, Yield Mode doesn’t lock the funds. While a token is earning you can still send it, receive more of it, swap it, or switch Yield Mode off and pull the full balance back. The app handles the withdrawal from Aave behind the scenes when you spend.
The smart contract in the middle
Between your wallet and Aave sits a Tangem smart contract that routes deposits and withdrawals. It has been independently audited and the source is public, so anyone can check what it does. It can’t move your assets without a transaction you’ve signed, and every action it takes is recorded on-chain.
That’s the difference from “earn” on an exchange. There, you lend to a company and hope it stays solvent. Here, your counterparty is a published contract you can read.
Fees
Network fees
Standard blockchain gas, paid to the network, not to Tangem. On Ethereum mainnet these can be meaningful; on cheaper networks they’re small.
Top-up fees
When a deposit is supplied to Aave, Tangem fronts the gas in the network’s native token (ETH, for example). The contract then takes the equivalent amount back out of the stablecoin you’re supplying. That deduction is the top-up fee.
Before you confirm, the app shows the network fee, the maximum fee it will accept, and a minimum recommended top-up. The minimum exists for a reason: supply NZ$20 of USDC on Ethereum and gas can eat months of yield. Larger, less frequent deposits work better.
Turning it on
- Open the Tangem app and select a supported stablecoin.
- Tap Learn more to see the current APY and terms.
- Tap Continue and accept the terms.
- Enable Yield Mode and sign the approval with your card or ring.
- Deposit when you’re ready. New arrivals are supplied automatically.
Accrued yield shows on the token’s screen as it builds.
Turning it off
Tap Disable Yield Mode on the token, confirm with your card, and the balance including earned yield moves back to your regular wallet balance. There’s no notice period.
Compared with a bank savings account
| Feature | Tangem Yield Mode | Bank savings |
|---|---|---|
| Custody | You hold the keys | The bank holds the funds |
| Access | Any time, from the app | Business hours for anything non-routine |
| Transparency | Every movement on-chain | Closed ledger |
| Source of return | DeFi lending interest | Bank interest |
| Rate | Variable, moves with pool demand | Set by the bank |
| Protection | Smart contract risk, no deposit guarantee | NZ Depositor Compensation Scheme (from July 2025) |
It’s not a like-for-like swap. Yield Mode usually pays more than a savings account, and you keep custody, but you’re taking on smart-contract and stablecoin risk that a bank deposit doesn’t carry. Only put in what you’re comfortable with on those terms.
A note on New Zealand tax
Inland Revenue treats crypto yield as income when you receive it, in NZD at the time. Keep a record of what Yield Mode pays you. Our crypto tax guide for NZ covers the detail, and your accountant can confirm how it applies to you.
FAQs
What is Tangem Yield Mode?
A feature in the Tangem app that supplies your stablecoins to Aave and earns lending yield, while your private keys stay on your card or ring.
Do I still control my private keys?
Yes. Tangem never has access to them, and every deposit, withdrawal or approval is signed by tapping your device.
Can I withdraw at any time?
Yes. There’s no lock-in. In the rare case that an Aave pool is almost fully borrowed, a withdrawal might take a little longer to clear, but there’s no notice period on Tangem’s side.
Which tokens can earn yield?
USDT, USDC and DAI on supported networks. The app shows which of your tokens are eligible.
Is it safe?
Tangem’s routing contract is audited and public, and Aave has a long track record. That said, DeFi carries smart-contract and stablecoin risk that doesn’t exist with a bank deposit. Treat it as an investment decision, not a savings account.
Yield Mode arrived in app version 5.30 and works with every current Tangem Wallet and Ring. If you’re in New Zealand and don’t have one yet, Tangem NZ is an authorised seller with stock in Auckland. The 2-card set is NZ$109.99 including GST.
