19 hour ago
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BULLISH 📈 : Kraken launches DeFi Earn offering up to 8% APY
Kraken Introduces DeFi Earn
- Kraken launched DeFi Earn on Jan. 26, allowing users to earn decentralized finance yields directly through the app.
- Users can deposit cash or stablecoins, converting to [USDC](https://holder.io/coins/usdc/) if necessary, and choose from three vault strategies: Balanced, High, or Advanced, with up to 8% APY.
- The system automatically allocates funds to lending protocols, accruing rewards without further user input.
Key Features
- No need for seed phrases or manual transaction signatures, thanks to Privy's embedded wallet infrastructure.
- Vaults are developed by Veda Labs on Kraken’s Ethereum Layer 2 (L2) network, Ink, with risk management by Chaos Labs and Sentora.
- Rewards stem from borrower demand on platforms like Aave, Morpho, Tydro, and Sky Ecosystem. Kraken charges a 25% fee on rewards only.
- Withdrawals are usually instant; however, delays may occur if protocol liquidity is low.
- DeFi Earn is available in 48 US states, Canada, and the European Economic Area, with more regions planned.
Expansion and Strategy
- Part of Kraken's strategy to blend traditional and decentralized finance, following the introduction of Auto Earn and commission-free stock trading.
- Ongoing development of Ink blockchain, ranking 14th by TVL with $534 million locked and a $595 million stablecoin market cap.
This initiative is expected to enhance growth within Kraken's ecosystem by simplifying onboarding and improving user experience.