Kraken Launches xStocks Vaults That Borrow Against Tokenized Equities

Kraken has launched three xStocks vaults that let eligible clients earn variable yield on tokenized equities while retaining exposure to the deposited assets. The product targets up to 2% APY by moving xStock collateral from Ink to Solana, but a 25% performance fee and DeFi lending risks apply.

The xStocks vaults initially display an estimated net APY of 2% for SPYx and QQQx and 1.8% for NVDAx. Rewards are converted into the same xStock and automatically compounded into the depositor’s balance.

Sentora designed the strategy, which involves bridging wrapped xStock to Solana and posting it as collateral in Kamino lending markets. The returns are swapped back into the deposited xStock, so a SPYx depositor accrues more SPYx rather than receiving cash or stablecoins.