US-based crypto exchange Kraken is introducing a new product that will give users access to decentralized finance (DeFi) opportunities.
Cracking say it introduces DeFi Earn to offer DeFi-like rewards without the complicated setup and processes.
“DeFi has always promised more control, yet most people are overwhelmed by wallet setup, seed phrases, and a maze of onchain steps. That’s why we’re excited to introduce DeFi Earn. It allows you to earn up to 8% APY on your funds 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 provide liquidity to onchain lending protocols.
“You deposit. The system handles the onchain actions. You earn competitive DeFi rewards through a simple and transparent experience.”
The new product is powered by the vault infrastructure provider Veda. Risk managers Chaos Lab and Sentosa manage the first three vaults: Balanced Yield USDC Vault, Boosted Yield USDC Vault, and Advanced Strategies USDC Vault, allocating assets, managing risk, and monitoring liquidity.
Says co-founder of Veda Sun Raghupathi:
“While traditional places to earn rewards level off, onchain markets continue to offer higher variable APYs. DeFi Earn highlights market-leading rates that come from real lending activity. The rewards are based on actual market demand for capital.
The product will initially be available to users in most US states, excluding New York and Maine, Canada and the European Economic Area.
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