Vaults on Krak allow you to grow your money by earning yield through decentralized finance (DeFi). You don’t need to know anything about crypto or blockchains, Vaults give you simple access to on-chain earning opportunities you control. It’s an easy way to put your money to work directly from the Krak app.
When you allocate funds to a Vault:
Your chosen cash or crypto is converted to USD Coin (USDC), a stablecoin widely used across DeFi.
Your funds are transferred into a self-custodial smart-contract Vault. You control access through your Krak app credentials.
Funds are supplied to decentralized lending protocols that operate using smart contracts. These platforms automatically manage loans and repayments using transparent code.
Borrowers pay interest, and your Vault balance grows automatically in real time.
You can withdraw your funds back to your Everyday balance at any time, usually instantly.
When depositing into a Vault, you'll choose a strategy that matches your comfort level:
Strategy | Description |
|---|---|
Balanced Yield | Lower risk, lower variable returns. Focuses on blue-chip DeFi protocols with stable performance. |
Boosted Yield | Balanced approach that seeks steady yield while taking on slightly higher risk. |
Advanced Strategies | Designed for clients comfortable with higher volatility. Targets newer DeFi opportunities with a potential for higher returns, although they are not guaranteed. |
Your selected strategy determines how your funds are allocated and what range of APY you might see. You can view your current APY and total earnings at any time in the Vault view.
Vault rewards on Krak are:
Continuous: Your balance grows automatically as rewards accrue.
Variable: APYs can change based on onchain activity & market conditions.
Compounded: Rewards are automatically added to your balance as you earn them.
All rewards are paid in USDC and reflected in your Vault in near real time.
A 25% fee applies only to the rewards you earn, never to your original deposit. All fees are recorded on the blockchain, so you can see them anytime directly in the app.
A percentage of the vault’s earnings are taken as a fee. This fee is taken from the vault automatically and before earnings are shown in your balance. There are no fees when you withdraw.
If you choose an asset besides USDC, Kraken will apply the standard fee to convert to USDC before depositing into a vault. You will have the chance to review the fee before confirming your deposit.
There are no withdrawal fees.
Krak Vaults are built on blockchain technology, where activity is visible and verifiable on-chain. However, like all decentralized finance (DeFi) products, there are some risks to be aware of:
A coding mistake could cause problems in how the system works.
If a borrower or partner system fails, it could affect your funds.
During busy times or market stress, it might take a little longer to take money out.
Before you deposit, each Vault clearly lists its specific risks and shows how much liquidity (available assets) it currently has, so you can always make an informed decision about what you’re getting into.
The rewards you earn can change over time, and there’s a chance you could lose some or all of your deposit. Krak Vaults aren’t part of any government or bank protection program, so they don’t come with the same safety nets as traditional savings accounts.
When you use Krak Vaults, you’re taking on market and protocol risk, meaning the value of assets or the systems involved could change or fail.
Vaults are rolling out regionally and may look slightly different depending on where you live.
For our full list of geographic restrictions, check out our article here.
Rewards are variable and not guaranteed; you can lose some or all of your assets. Interacting with on-chain smart contracts involves risks which are further detailed in the terms of service, including technological risk (bugs, exploits, and oracle/MEV/bridge failures), market risk (price volatility, de-pegs, and liquidation where relevant), and operational risk (irreversible transactions, gas fees, network congestion). Kraken does not control third-party protocols. Offered by Payward Wallet, LLC. Fees apply. Availability varies by jurisdiction.