Veda Vaults Powering Kraken Earn Exceed $400M in Deposits

Kraken Earn Vaults have surpassed $400 million in deposits across more than 65,000 users, making it the largest DeFi Earn integration in the market today by a margin of nearly $100 million. 

This major milestone comes less than five months after the launch of the Kraken stablecoin vaults and just two weeks after the launch of Kraken Bitcoin Earn.

With deposits across four Veda vaults curated by institutional-grade risk manager Sentora, the Kraken Earn Vaults product has quadrupled in size since hitting $100 million in stablecoin deposits in March. 

This growth reflects increasing demand for an Earn product that delivers competitive multiprotocol yield on stablecoins or BTC without requiring users to manage wallets or seed phrases at any stage in the process. Veda's vault infrastructure handles the complexity in the background while Kraken delivers an intuitive frontend experience.

‍

Where the growth is coming from

In May, Veda and Kraken expanded the partnership beyond stablecoins with the launch of a Bitcoin Earn vault, available to users in 100+ countries. Within days, the Kraken BTC Vault exceeded $100 million in bitcoin deposits with more than 12,000 users. This vault swaps assets to kBTC, Kraken's wrapped bitcoin, and runs a supervised loan strategy curated by Sentora.

Deposit flows have also concentrated in the Advanced Strategies USDC vault. This vault uses a multiprotocol, multichain yield strategy to deliver a 30-day net yield of up to 6% without incentives, Blockworks data shows, significantly outperforming the benchmark rate and single-protocol vault integrations.

‍

Flexible vaults, secure design

Our vaults can support multiple deposit assets, chains, protocols, and curators with a single deployment. When new yield opportunities emerge or market conditions shift, this allows risk managers to rebalance vaults and change yield strategies without ever requiring users to migrate funds or interact with smart contracts. 

Sentora has been able to repeatedly leverage this with the Advanced USDC vault, adding and removing DeFi protocols to fine-tune strategies for higher yield.

Kraken chose to launch four vaults with Veda to give users the ability to choose which yield profile best suits their needs. Each vault operates a different risk-adjusted strategy and leverages different DeFi protocols.

While flexible, Veda vaults also enforce limitations on available actions using an allowlist-only approach and Merkle verification, meaning each vault is deployed with only the modules and pre-approved actions the enterprise product requires. Vault functionality can be modified via adding or removing modules as needed, ensuring the highest levels of security while leaving the option for future customization open.

This non-custodial vault design matters as much as the flexibility. With Veda, this means that only depositors can withdraw or transfer their funds. The vault ensures that neither Veda nor the enterprise partner can ever withdraw user funds. During the Kraken deposit process, a self-custodial Privy wallet is created on the backend for each user, enabling self-custody. 

One yield solution, endless possibilities

Kraken DeFi Earn launched with stablecoins, expanded to Bitcoin, and continues to scale across both Ethereum and Ink, with over $3.4 million in total yield generated thus far. These vaults have resulted in new user signups for Kraken and drive a new line of revenue to the exchange while keeping users on-platform.

For Veda, this milestone reinforces our broader thesis: Enterprise platforms need yield infrastructure that's non-custodial and adaptable to changing markets by design. The path from $100M to $400M in just a few months is the clearest indicator yet that embedded onchain yield works at scale when the infrastructure beneath it is flexible.

Kraken DeFi Earn highlights why vaults that support multichain, multiprotocol deployments are essential, even for enterprises opting for a simpler solution. As markets change, having the ability to add modules to a Veda vault that enhance or modify functionality means users don’t have to withdraw their funds and move them to a new vault if protocol issues arise or strategies change. 

With Veda, protocol changes, curator transitions, and crosschain migrations can occur on the backend without user action required. This adaptability has allowed EtherFi and Plasma to migrate user funds crosschain, and has allowed the Kraken vaults to make needed changes to reduce risk and optimize for growth. 

Our vaults were designed to bring the best of both worlds to the end user: access to appealing onchain yield opportunities from across DeFi, but without the complexity that blockchain engagement has historically required of users. 

To date, Veda vaults have facilitated over $16 billion in lifetime deposits across 270,000+ depositors, generating over $400 million in total yield. 

And we’re just getting started.