YieldClub today unveiled its mobile app designed to make high-yield crypto savings simple and accessible, announcing an upcoming public launch alongside a $2.5 million pre-seed funding round. Aiming to bridge the gap between traditional finance and the high-return potential of decentralized finance (DeFi), YieldClub provides an intuitive platform where users can easily earn up to 12% Annual Percentage Yield (APY) on stablecoins, significantly outpacing traditional savings accounts.
The funding round was backed by prominent fintech and crypto investors including Pharsalus, Flex Capital, The House Fund, and Superlayer, with strategic angel investments from proven tech leaders like Kevin Chou (Founder, Kabam), Sam Shank (Founder, HotelTonight), Charlie Songhurst (Former Head of Strategy, Microsoft; Investor), and early Solana contributors.
YieldClub was founded by CEO Mahesh Vellanki and CTO Michael Li, veterans of successful consumer tech companies Rally (creator economy) and Kabam (mobile gaming unicorn, ~$1B exit). Their mission is to demystify DeFi and package its benefits into a consumer-friendly savings product. YieldClub achieves this through a sleek app interface, seamless social login onboarding, and regionally optimized methods for converting cash to stablecoins. Crucially, YieldClub operates on a non-custodial model, meaning users always retain full control over their funds.
“DeFi offers yields far outpacing traditional savings, but accessing them has been unnecessarily complex – often challenging even for crypto insiders,” said Mahesh Vellanki, CEO of YieldClub. “YieldClub changes that. We’ve distilled sophisticated DeFi yield strategies, the kind often used by ‘smart money,’ into an incredibly simple and secure mobile app. Anyone can now tap into significant yield potential in just a few clicks. We essentially built the straightforward, high-performance savings tool we wished existed for everyone, including ourselves.”
YieldClub enters the market at a time when consumers are actively seeking alternatives to low-interest savings options. The platform leverages mature, audited DeFi protocols like Morpho (a top lending protocol) to generate yield on stablecoins (digital assets pegged to currencies like the US Dollar). This offers users exposure to potentially higher returns without the volatility often associated with other cryptocurrencies. The approach is particularly relevant in international markets like Brazil, where stablecoin adoption is growing rapidly.
“YieldClub has cracked the code on making DeFi truly consumer-friendly,” said Auren Hoffman, General Partner of Flex Capital. “Mahesh, Michael, and the team have a rare combination of deep crypto understanding and a proven ability to build engaging products that scale to millions. They are perfectly positioned to bring the benefits of DeFi yield to the mainstream.”
The $2.5 million pre-seed funding will fuel the app’s public launch, expand its range of yield-generating options, enhance partnerships for easy cash-to-crypto conversion, and grow the engineering and product teams. Future plans include launching a debit card allowing users to spend their stablecoin balances while still earning yield, and exploring tokenized stock offerings for international users – all while maintaining the non-custodial promise.
“Think Robinhood, but for DeFi products,” added Vellanki. “We’re applying that same focus on user experience and accessibility to unlock a powerful financial tool previously reserved for crypto experts. We’re putting institutional-grade yield generation into everyone’s pocket.”
