Kraken Unveils xStocks Vaults for Tokenized Equity Yield
Kraken has launched xStocks Vaults that allow eligible clients to earn variable yield on tokenized equities while retaining exposure to the deposited assets. The vaults support three initial tokenized equity or exchange-traded fund options: SPYx, QQQx, and NVDAx. Kraken charges a 25% performance fee on vault earnings.
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.
Kraken uses a risk management strategy designed by Sentora, which bridges the wrapped xStock to Solana and posts it as collateral in Kamino lending markets. The strategy borrows stablecoins against the collateral and deploys them into selected DeFi strategies, with returns swapped back into the deposited xStock.