Kraken launches DeFi Earn with up to 8% APY

Kraken launches DeFi Earn, offering up to 8% APY on cash and stablecoins. No wallet setup needed. Funds are allocated to DeFi protocols, rewards paid in USDC. Available in the US, Canada, and EEA.

Kraken has introduced DeFi Earn, a new feature enabling users to earn up to 8% APY on cash and stablecoins directly within the Kraken app. Users can deposit cash or supported stablecoins, which are converted to USDC if needed, and select from three automated vault strategies: Balanced, High, or Advanced. Funds are automatically allocated to audited DeFi lending protocols such as Aave, Morpho, Tydro, and Sky Ecosystem, with rewards generated based on real borrower demand. The service eliminates the need for separate wallets, seed phrases, or manual signatures by leveraging embedded wallet infrastructure from Privy and operates on Kraken’s Ethereum Layer 2, the Ink Network. Risk management is handled by Chaos Labs and Sentora. Kraken charges a 25% performance fee on earnings, and withdrawals are typically instant, though delays may occur if protocol liquidity is low. DeFi Earn is available in 48 U.S. states, Canada, and the EEA, with plans for further expansion. This launch bridges centralized and decentralized finance, making DeFi yields accessible to mainstream users.