With the launch of DeFi Earn, the exchange is pulling one of crypto’s most powerful ideas out of the weeds and translating it into an application that many investors already trust.
For experienced users, this may take some time. Kraken’s speech is simple. Earn up to 8% APY on supported assets without seed phrases, manual approvals, or juggling multiple apps.
How DeFi Earn works
DeFi Earn is built with partners Veda, Sentora and ChaosLabs and runs directly within the Kraken app. Users deposit assets, choose a vault and automatically earn rewards. The goal is to make on-chain rewards as simple as a traditional savings product, while maintaining returns tied to real blockchain activity.
We make DeFi rewards simple.
Discover DeFi Earn, powered by @Veda_labs, @SentoraHQ And @ChaosLabs.
Earn up to 8% APY on your assets, all with the Kraken app experience you already know and trust.
No complicated setup. No technical steps. Just start winning ⤵️… pic.twitter.com/qD9UnwYkus
-Kraken (@krakenfx) January 26, 2026
At its core, DeFi Earn connects user deposits to established lending protocols such as Aave, Morpho, Tydro, and Sky Ecosystem. These platforms allow borrowers to access crypto liquidity by paying interest. This demand from borrowers is what generates rewards for users. Kraken emphasizes that there are no token subsidies or hidden incentives. Returns come from actual usage and not short-term promotions.
Users can choose between balanced, high, or advanced vaults. These options reflect different risk and return profiles. Risk management is handled by Sentora and ChaosLabs, teams known for monitoring protocol health, liquidity, and market stress. Veda provides the infrastructure that routes funds between protocols in a controlled manner.
Wondering how this all plays out?
Rewards come from real borrower demand in protocols such as @Aave, @Morpho, @TydroHQ, @SkyEcosystem and more, powered by Veda and managed by the Chaos and Sentora risk teams.
Withdrawals are usually instant. If the liquidity of the vault is limited, there will be…
-Kraken (@krakenfx) January 26, 2026
A key element is Privy’s integrated wallet system. It automates chain steps in the background. This means no seed phrases to store and no manual transaction signing for each action. For many newcomers, this removes the biggest barrier to trying DeFi.
Withdrawals are usually instant. Kraken notes that if a vault is temporarily short of liquidity, users may experience short delays, but the funds remain on-chain and visible.
Learn more about Kraken
Kraken has announced that CASH, a new 1:1 USD-backed stablecoin from Bridge and Phantom, will soon be coming to the platform. Trading is scheduled to begin on January 27 at 2:00 p.m. UTC. Considered an open, neutral and interoperable stablecoin. CASH is designed to flow smoothly across both crypto networks and traditional payment systems.
Coming soon to Kraken 💵$CASH by @useCASH is a 1:1 USD-backed stablecoin from Bridge and Phantom.
Open, neutral and interoperable. Designed for real-world utility in crypto and traditional payments.
Trading begins on January 27 at 2:00 p.m. UTC.
Get ready → pic.twitter.com/KVznw6MIQx
-Kraken (@krakenfx) January 26, 2026
By focusing on real utility rather than speculation, the project aims to make dollar transfers simpler and more flexible for everyday use. Additionally, Kraken’s support gives it immediate reach to a large global user base.
Disclaimer
The information provided by Altcoin Buzz does not constitute financial advice. It is intended for educational, entertainment and informational purposes only. Any opinions or strategies shared are those of the editors/reviewers, and their risk tolerance may differ from yours. We are not responsible for any losses you may incur as a result of investments related to the information provided. Bitcoin and other cryptocurrencies are high-risk assets; therefore, perform thorough due diligence. Copyright Altcoin Buzz Pte Ltd.
