Kraken DeFi Earn: How to generate up to 8% yield on your euros
The exchange platform Kraken has just unveiled DeFi Earn, a feature that promises to democratize access to decentralized finance rewards. Launched on January 26, 2026, this new feature allows users to generate up to 8% variable APY on their euros, dollars, and USDC, without having to master the technical subtleties usually associated with DeFi.
A gateway to DeFi without technical friction
Until now, enjoying the rewards offered by decentralized finance required juggling with non-custodial wallets, securing seed phrases, anticipating gas fees, and cumbersome navigation between protocols. DeFi Earn removes these barriers by integrating the entire process directly into Kraken’s classic interface.
“DeFi Earn is much more than a new feature. It is the bridge between the promise of decentralized finance and the user experience people expect from a modern financial application“, explains John Zettler, product director of Earn at Kraken.
Practically, the user deposits funds in fiat currency (EUR, USD) or USDC. If necessary, the funds are converted into USDC, then automatically placed into vaults managed by Veda, the most widely used DeFi vault infrastructure in the sector with over 3.5 billion dollars in total value locked (TVL).
How does DeFi Earn work?
The mechanism relies on a fully automated three-step process.
- Step 1 – Deposit: the user transfers funds from their Kraken account to DeFi Earn. Accepted currencies include euro, US dollar, and USDC.
- Step 2 – Allocation: funds are converted to USDC if needed, then deployed into audited vaults operating on the Ethereum network and on Ink, Kraken’s Layer 2. These vaults then lend the liquidity to recognized DeFi protocols.
- Step 3 – Rewards generation: borrowers using these protocols pay fees to access liquidity. These payments are redistributed to depositors as rewards in USDC, credited directly to their Kraken accounts.
The entire process occurs without manual intervention from the user, who never needs to create an external wallet or sign on-chain transactions.
Leading DeFi protocols
The vaults of DeFi Earn are not exposed to experimental protocols. Liquidity is allocated to proven decentralized lending platforms, including:
- Aave: the dominant DeFi lending protocol, securing more than 50 billion dollars in net deposits and representing about 82% of the total debt on Ethereum.
- Tydro and Sky Ecosystem: emerging protocols integrated into the Ink ecosystem.
The underlying technical infrastructure is provided by Veda Labs, whose BoringVault standard has become the industry reference. Veda raised 18 million dollars in June 2025 from CoinFund and Coinbase Ventures to accelerate its development.
Three strategies according to your risk profile
DeFi Earn offers three distinct vaults, each managed by specialized risk managers:
| Vault | Manager | Profile |
| Balanced Yield USDC Vault | Chaos Labs | Moderate risk |
| Boosted Yield USDC Vault | Chaos Labs | Intermediate risk |
| Advanced Strategies USDC Vault | Sentora | Advanced strategies |
Chaos Labs, based in New York, raised 55 million dollars in August 2024 to develop its on-chain risk management platform. The company already works with more than 20 major protocols, including Aave, GMX, and Jupiter.
Sentora offers institutional infrastructure for DeFi, with automated strategies and real-time monitoring tools.
Ink: Kraken’s in-house Layer 2
A central element of DeFi Earn is the deployment on Ink, the Layer 2 blockchain launched by Kraken in December 2024. Built on the Optimism OP Stack, Ink is part of the Superchain, a network of blockchains sharing security and interoperability.
Ink offers one-second block times, reduced fees compared to Ethereum mainnet, and native integration with the Kraken ecosystem. The Ink Foundation, an independent entity created to govern the network, announced the upcoming launch of an INK token, with an airdrop planned for early users of liquidity protocols.
By integrating Ink into DeFi Earn, Kraken enhances the smoothness of the user journey while benefiting from marginal transaction costs.
Geographical availability and access conditions
DeFi Earn is available in:
- The European Economic Area (including France)
- Canada
- 48 US states (except New York and Maine)
Accepted deposits include major fiat currencies and stablecoins supported by Kraken. Withdrawals are “generally instant,” according to official documentation, although delays can occur if there is liquidity stress on underlying protocols.
What it changes for the user
DeFi Earn fits into a broader trend: centralized platforms becoming gateways to DeFi. Coinbase paved the way with Base, its Layer 2 launched in 2023. Kraken follows a similar strategy with Ink and DeFi Earn.
For individual investors, the benefit is twofold: access to rewards higher than traditional savings accounts (the Livret A caps at 2.4% in 2026) while avoiding the steep technical learning curve of classic DeFi.
For Kraken, the challenge is to retain its user base by offering value-added services beyond simple trading, in a context of fierce competition among exchanges.
How to start with DeFi Earn
- Log in to your Kraken account
- Go to the “Earn” section
- Select DeFi Earn
- Choose the desired amount and risk strategy
- Accept the terms
- Rewards begin accumulating automatically
Rewards are variable and not guaranteed; you can lose all or part of your assets. Interaction with smart contracts on the chain carries risks detailed in the terms of use, including technological risks (bugs, exploits, Oracle/MEV/bridge failures), market risks (price volatility, depreciation, and liquidation where applicable), and operational risks (irreversible transactions, gas fees, network congestion). Kraken does not control third-party protocols. Offered by Payward Wallet, LLC. Fees apply. Availability varies by jurisdiction.
FAQ – Kraken DeFi Earn
Up to 8% variable APY, depending on market conditions.
Euros, US dollars, and USDC.
Ethereum and Ink (Kraken’s Layer 2).
Generally yes, except in cases of liquidity constraints on underlying protocols.
Yes, throughout the European Economic Area.
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