AAVE drops 15.07% over the past week as a new savings app for retail users launches to compete with traditional banks

On November 18, 2025,

(AAVE) introduced a retail savings application that offers up to 9% annual percentage yield, positioning itself as a direct rival to conventional banks. This new app is crafted to deliver higher-yield savings choices and real-time interest updates for everyday users, aiming to close the gap between decentralized finance and traditional banking. With this launch, Aave is shifting its focus toward user-friendly financial solutions, utilizing its infrastructure built on .

Through the app, users can deposit money using their bank accounts, debit cards, or stablecoins, and enjoy immediate withdrawals without any delays. Aave also offers up to $1 million in balance protection and enables users to estimate their potential returns, strengthening its reputation as a safe and approachable choice for retail customers. The waitlist for early access is now open, reflecting strong initial demand.

Aave’s latest initiative is part of a larger movement where DeFi platforms are expanding into services similar to neobanks. The app’s annual yield, ranging from 5% to 9%, far surpasses the typical 0.4% to 4% returns from high-yield savings accounts at traditional banks. Stani Kulechov, CEO of Aave, highlighted that the app is designed to make DeFi accessible to the general public, removing the requirement for crypto wallets or technical expertise.

Security is a top priority for Aave. The protocol has maintained a spotless record with no exploits over its five-year existence, supported by numerous audits of its code and economic structure. Kulechov pointed out that the app’s security is reinforced by both robust market mechanisms and strong code, setting it apart from competitors.

This product is a key component of Aave’s broader ambition to evolve into a comprehensive financial platform. In October, Aave acquired Stable Finance, a fintech company focused on consumers, to speed up the creation of user-oriented DeFi offerings. Mario Baxter Cabrera, the founder of Stable Finance, will now lead product development at Aave Labs, bringing his team along.

Even with the app’s debut, the value of Aave’s token has continued to decline, dropping 15.07% over the past week. In the last month, the token has decreased by 26.11%, and it is down 45.34% since the beginning of the year. These declines are attributed to broader market trends rather than a direct reaction to the app’s release, which is seen as a long-term strategic move.

Currently, the Aave app is only available for iOS devices, with Android and web versions listed as “coming soon.” The app also offers

interest that accumulates every second, providing a technical edge over both traditional savings accounts and many DeFi platforms, which typically compound interest on a daily or monthly basis.

In the wider financial landscape, Aave’s app launch comes as competition intensifies among DeFi and established fintech companies. Other platforms, such as Coinbase and Crypto.com, have also rolled out high-yield savings products, while institutions like JPMorgan and Stripe are increasingly incorporating blockchain technology into their services.

Aave’s foray into consumer finance highlights the evolution of the DeFi sector, as platforms now target mainstream customers and compete with traditional banks. The future success of the Aave app will likely hinge on its ability to uphold strong security, deliver attractive yields, and further streamline the user experience.