Kraken DeFi Earn: How to generate up to 8% return on your euros

The exchange platform Kraken just revealed DeFi Earna 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, taking advantage of the rewards offered by decentralized finance required juggling non-custodial walletsof the seed phrases to secure, gas costs to anticipate and laborious navigation between protocols. DeFi Earn removes these obstacles by integrating the entire process directly into the classic Kraken interface.

“ DeFi Earn is much more than a new feature. It's the bridge between the promise of decentralized finance and the user experience people expect from a modern financial app “, explain John ZettlerEarn Product Director at Kraken.

Concretely, the user deposits funds in fiat currency (EUR, USD) or in USDC. If necessary, funds are converted to USDC and then automatically placed in safes managed by Vedathe most widely used DeFi vault infrastructure in the industry with over $3.5 billion total value locked (TVL).

How does DeFi Earn work?

The mechanism is based on a fully automated three-step circuit.

• 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 necessary, then deployed to audited vaults operating on the network Ethereum and on Inkthe Layer 2 developed by Kraken. These vaults then lend the liquidity to recognized DeFi protocols.
• Step 3 – Generate rewards : Borrowers using these protocols pay fees to access liquidity. These payments are redistributed to depositors in the form of USDC rewards, credited directly to their Kraken account.

The entire process takes place without manual intervention from the user, who never needs to create an external wallet or sign on-chain transactions.

Leading DeFi protocols

The chests of DeFi Earn are not exposed to experimental protocols. Liquidity is allocated to proven decentralized lending platforms, including:

• Aave : the dominant lending protocol in DeFi, securing over $50 billion in net deposits and representing approximately 82% of total debt on Ethereum.
• Tydro And Sky Ecosystem : emerging protocols integrated into the Ink ecosystem.

The underlying technical infrastructure is provided by Veda Labswhose BoringVault standard has become the industry benchmark. Veda raised $18 million in June 2025 from CoinFund and Coinbase Ventures to accelerate its development.

Three strategies depending on your risk profile

DeFi Earn offers three distinct vaults, each administered by specialist risk managers:

Chaos Labsbased in New York, raised $55 million 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: Layer 2 house of Kraken

A central element of DeFi Earn is the deployment on Inkthe Layer 2 blockchain launched by Kraken in December 2024. Built on theOP Optimism StackInk is part of the Superchaina network of blockchains sharing security and interoperability.

Ink offers one second block timereduced 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 adopters of liquidity protocols.

By integrating Ink with DeFi Earn, Kraken strengthens the fluidity of the user journey while benefiting from marginal transaction costs.

Geographic availability and access conditions

DeFi Earn is accessible in:

• The European Economic Area (including France)
• Canada
• 48 US states (except New York and Maine)

Deposits accepted include major fiat currencies and stablecoins supported by Kraken. Withdrawals are “generally instantaneous,” according to official documentation, although delays may occur due to liquidity strains on the underlying protocols.

What it changes for the user

DeFi Earn is part of an underlying trend: centralized platforms are becoming DeFi access interfaces. Coinbase led the way with Base, its Layer 2 launching in 2023. Kraken is following a similar strategy with Ink and DeFi Earn.

For the individual investor, the interest is twofold: access to rewards superior to those of traditional booklets (Livret A caps at 2.4% in 2026) while avoiding the 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 between exchanges.

How to get started with DeFi Earn

1. Log in to your account Kraken
2. Access the “Earn” section
3. Select DeFi Earn
4. Choose the amount and desired risk strategy
5. Accept the conditions
6. Rewards start accumulating automatically

Rewards vary and are not guaranteed; you may lose all or part of your assets. Interacting with on-chain smart contracts carries risks which are detailed in the Terms of Use, including technological risks (bugs, exploits and Oracle/MEV/bridge failures), market risks (price volatility, depreciation and liquidation if 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.