#What is Kraken's DeFi Earn?
Kraken, the well-known US-based cryptocurrency exchange, recently unveiled DeFi Earn. This innovative product allows users to earn on-chain rewards reaching up to 8% annual percentage yield directly through the Kraken app. Users can engage with this feature without needing to set up a separate wallet or navigate the complexities associated with decentralized finance.
#How Does DeFi Earn Work?
DeFi Earn is accessible to users in the United States, Canada, and various European countries, significantly broadening the opportunity for managed on-chain yield in regulated markets. The product leverages embedded wallet technology provided by Privy, which facilitates earning yield without requiring seed phrases or complex transaction signing.
Once users deposit their assets, they can automatically start earning from their chosen vault type—Balanced, High, or Advanced. This means your funds begin generating rewards immediately upon deposit.
#Where Do the Yields Come From?
The yield you earn through DeFi Earn is sourced from real borrower demand across established decentralized finance protocols, including Aave, Morpho, Tydro, and Sky Ecosystem. The strategy for executing these yields is managed by Veda Labs, ensuring a thorough approach to yield generation. Additionally, risk assessment and monitoring of the vaults are handled by Chaos Labs and Sentora, providing an extra layer of security and reliability.
#What Should Users Know About Withdrawals?
While Kraken typically offers instant withdrawals, it's essential to note that delays might occur during times when vault liquidity is tight. Kraken stresses that the rewards users receive come from actual on-chain activity as opposed to token incentives or subsidies, emphasizing the sustainability of the earnings.
With Kraken’s DeFi Earn, users can confidently participate in the decentralized finance ecosystem while enjoying the benefits of automated yield generation without the usual technical hurdles.