DeFi Earn FAQ

DeFi Earn is available on Kraken, Kraken Pro, and Krak. Availability depends on your location:

If you don’t see DeFi Earn in your account, it may not be offered in your jurisdiction.

You can deposit cash (USD, EUR, etc.), stablecoins (USDG, USDC, USDT) or Bitcoin (BTC). When you deposit, your asset is automatically converted to the vault's base asset before being allocated. Standard conversion fees apply. You'll see the supported deposit assets and any applicable fees before you confirm.

A DeFi Vault is a smart contract that directs deposits into onchain borrow/lend protocols. Those protocols pay a yield on supplied capital, which flows back to vault depositors. 

Each vault is run by a risk manager that oversees a vault’s allocations. The risk managers are independent of Kraken, and Kraken does not have any control over vault deposits.

DeFi Earn Vaults are powered by independent DeFi lending protocols, sometimes referred to as vault providers. These are third-party platforms that connect depositors with borrowers who post collateral and pay interest.

Examples of vault providers include Aave, and more. The exact provider used depends on the Vault strategy you select. Each provider has its own track record, risk profile, and reward structure.

Rewards accrue continuously and are automatically added to your vault balance. There are no weekly or monthly payouts, your balance simply grows in real time.

The APY (Annual Percentage Yield) reflects the percentage rate of return over one year. This rate is variable due to market conditions, and the rate shown is a point-in-time number.  

DeFi Vaults earn yield from supplying capital to borrow/lend protocols.  Those protocols pay a rate that fluctuates in real-time based on the supply & demand of capital.

No. Rewards are paid in the vault's base asset (USDC for the USDC Vault, BTC for the BTC Vault) and added directly to your vault balance. If a Vault also distributes bonus ("kicker") rewards in other tokens, those may need to be claimed separately.

Withdrawals are usually instant. In times of high demand, if many users withdraw at once, there may not be enough liquidity immediately available. In that case, you may only be able to withdraw part of your funds until the Vault is replenished. During this time, your funds remain in the Vault and continue earning rewards.

DeFi Earn carries unique risks that should be considered before using the product:

In the Protected Strategies USDC vault, smart contract and bad debt losses may be covered by Firelight up to $100,000 per depositor, subject to its terms. Liquidity risk is not covered. Coverage is not insurance and does not guarantee your deposit.

You should only deposit funds you are comfortable putting into DeFi markets.

Yes. While rare, losses are possible due to market volatility, protocol failures, or liquidity shortages.

No. DeFi Earn relies on embedded wallets, which are fully controlled by the user.  When assets are in DeFi Vaults, they are allocated by a third-party risk manager.  Kraken has no control over assets in embedded wallets or deposited into Vaults.

For security reasons, deposits above a certain threshold require two-factor authentication (2FA) to confirm.

Your deposit is not insured. The vault’s curator, Sentora, has enrolled the Protected Strategies USDC vault in an onchain coverage program provided by Firelight, a third party. It may cover specific technical and economic failure events up to $100,000 per depositor, subject to Firelight’s terms. The Instant Strategies USDC vault is not covered. See Firelight coverage on DeFi Earn.

No. Sentora has enrolled the vault itself, so deposits in the vault may be eligible when they are in the vault, subject to Firelight’s terms. Firelight, not Kraken, determines whether an event is covered under its terms. Kraken has no role in determining whether there is coverage for a specific event.

There’s no separate charge. The cost of coverage is paid to Firelight out of the vault’s yield, so the APY displayed for Protected Strategies USDC is already net of it. Kraken receives no part of this cost.

This can happen while your funds are being converted to the vault's base asset or awaiting blockchain confirmation. Pending deposits typically resolve quickly.

Withdrawals are usually instant. However, if many users withdraw at the same time, vault liquidity may be temporarily low. In that case, you’ll only be able to withdraw part of your balance until the vault’s liquidity is replenished.

This means your withdrawal request has been submitted and is awaiting confirmation from the blockchain. If the withdrawal fails, your funds remain in the vault. Try again later, or attempt a smaller withdrawal.

You’ll need to export your embedded wallet or withdraw your DeFi Earn funds first.

Kraken does not have control over your assets in this product, and only you can control the embedded wallet. If you do not export or withdraw your DeFi Earn assets before account closure, Kraken cannot retrieve them for you.

You’ll still be able to see and withdraw your balance, but you won’t be able to make new deposits.

Check that:

Yes! You can export your embedded wallet on Kraken and Kraken Pro. Check out our guide here.