The US-based crypto exchange Kraken is introducing a new product that allows its users to access decentralized finance (DeFi) earning opportunities.
Kraken says it is rolling out DeFi Earn to offer DeFi-like rewards without the complicated setups and processes.
“DeFi has always promised more control, yet most people end up overwhelmed by wallet setups, seed phrases, and a maze of onchain steps. That’s why we’re excited to introduce DeFi Earn. It lets you earn up to 8% APY on your cash and stablecoins through the same Kraken experience you already use.”
The exchange says the simplified process involves depositing assets, converting them into stablecoins and moving them into vaults that supply liquidity to onchain lending protocols.
“You deposit. The system handles the onchain actions. You earn competitive DeFi rewards through a straightforward and transparent experience.”
The new product is powered by the vault infrastructure provider Veda. The risk managers Chaos Lab and Sentosa operate the first three vaults—Balanced Yield USDC Vault, Boosted Yield USDC Vault and Advanced Strategies USDC Vault, as well as allocate assets, manage risks and monitor liquidity.
Says Veda co-founder Sun Raghupathi,
“As traditional places to earn rewards flatten, onchain markets continue to offer higher variable APYs. DeFi Earn highlights market leading rates that come from real lending activity. The rewards are grounded in actual market demand for capital.
The product will initially be available to users based in most U.S. states excluding New York and Maine, Canada and the European Economic Area.
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