Centralized exchange Kraken introduces on-chain Bitcoin lending vaults offering up to 2.5% annual yield for BTC holders.
Kraken has launched Bitcoin Vaults, allowing users to earn up to 2.5% APY on BTC holdings through automated, Bitcoin-denominated rewards. The feature targets long-term holders seeking yield without added complexity or custody changes.
The vaults utilize DeFi infrastructure from Veda and risk management by institutional firm Sentora, executing lending strategies via protocols like Aave and Morpho. A 25% performance fee is deducted from rewards, though the advertised 2.5% yield accounts for this.
Yield is generated through on-chain lending and borrowing, with Kraken emphasizing simplicity and trust as key differentiators for Bitcoin holders.