Kraken has introduced Bitcoin Vaults, allowing users to earn up to 2.5% APY in Bitcoin rewards on their BTC holdings. The yield is generated through on-chain lending and borrowing strategies executed by DeFi infrastructure firm Veda and risk manager Sentora, using protocols like Aave, Morpho, and Tydro. A 25% performance fee is deducted. Withdrawals require a 5-day processing period. This product avoids token subsidies or promo rates, but comes amid historical regulatory scrutiny of similar yield-bearing products from exchanges like Gemini Earn and BlockFi.

Key facts

• Kraken Bitcoin Vaults offer up to 2.5% APY in Bitcoin rewards.
• Funds are deployed via Veda and Sentora using on-chain protocols.
• A 25% performance fee is applied to generated rewards.
• Withdrawals require a 5-day processing and return period.
• Similar products from Gemini and BlockFi faced regulatory scrutiny.

KeyAudit data perspective