Kraken, the US-based crypto exchange, today launched DeFi Earn, a new product allowing users to earn onchain rewards of up to 8% APY directly within its app without manual wallet setup or technical DeFi interactions.

The product is available to users in the United States, Canada, and Europe, expanding access to managed onchain yield across key regulated markets.

The offering uses embedded wallet infrastructure provided by Privy, enabling users to deposit assets and earn yield without seed phrases or transaction signing. Users can select between Balanced, High, or Advanced vaults, with rewards generated automatically once funds are deposited.

Yield is sourced from borrower demand across established DeFi protocols including Aave, Morpho, Tydro, and Sky Ecosystem. Strategy execution is powered by Veda Labs, while risk management and monitoring are handled by Chaos Labs and Sentora.

Kraken said withdrawals are typically instant, though temporary delays may occur during periods of tight vault liquidity. The company emphasized that rewards are derived from real onchain activity rather than token incentives or subsidies.