Kraken Wallet Adds DeFi Earn Feature for Self-Custody Users
(16 days ago) · 1 source · Summarized by CryptoBipto
Kraken has announced an update to its self-custody wallet that now includes a DeFi Earn feature. The update allows users of the Kraken Wallet to access decentralized finance yield opportunities directly from their self-custody wallet.
WHY IT MATTERS
When you keep crypto on an exchange, the exchange holds your assets for you, similar to how a bank holds your money. A self-custody wallet is different — it is like having your own personal safe where only you have the key. DeFi Earn refers to ways of putting your crypto to work in decentralized finance protocols, which are automated systems that run on blockchains and can pay yields, somewhat like earning interest at a bank but without a traditional middleman. Kraken adding this feature to its self-custody wallet means users can potentially earn yield while keeping direct control of their own crypto, though this also means users bear the risks themselves, including the possibility of smart contract bugs or losses.
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- blog.kraken.com
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Learn the concepts behind this
Clear explanations of the subjects this article touches, with every term defined.
- How do crypto wallets and self-custody work?How crypto wallets, private keys and seed phrases work, the difference between hot, cold, hardware and custodial wallets, and what self-custody actually means.
- What is DeFi, and how does decentralized finance work?Decentralized finance explained: liquidity pools, yield farming, impermanent loss, DAOs and governance tokens, each with its own definition page.