Crypto14 September, 20262 min read
Kraken Launches Onchain Yield Vaults for SPYx, QQQx, and NVDAx Tokenized Stocks
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Kraken launches onchain xStocks yield vaults for SPYx, QQQx, NVDAx. Initial APYs: 2% for SPYx/QQx, 1.8% for NVDAx.
Kraken’s xStocks vaults
Kraken has launched onchain yield vaults for SPYx, QQQx and NVDAx, letting eligible clients earn variable yield on tokenized versions of the SPDR S&P 500 ETF, Invesco QQQ and Nvidia shares without selling their positions. Cryptonews.net says the launch APYs are 2% for SPYx and QQQx and 1.8% for NVDAx, net of fees, and that rewards accrue continuously, are converted back into the same xStock and automatically compound.
“Launch APYs are 2% for SPYx and QQQx and 1.8% for NVDAx, net of fees.”
Cointelegraph reports the vaults support tokenized versions of SPYx, QQQx and NVDAx, with yield generated by lending the assets through onchain markets and withdrawal requests processed within three days. Crypto Briefing adds that the vaults deploy xStocks tokens as collateral within lending and credit markets on Solana, specifically through the Kamino protocol, and then swap the returns back into the original asset.
How yield is generated
Cryptonews.net describes the mechanics as borrowing stablecoins against xStock collateral, with liquidation risk if the value of an asset such as NVDAx falls sharply and breaches required thresholds. Crypto News says Kraken transfers a deposited eligible xStock to an embedded self-custody wallet on Ink, wraps the token for vault accounting before placing it into infrastructure provided by Veda, and then moves the wrapped xStock across chains to Solana.
Crypto News further states that once on Solana, the asset enters the Kamino lending market as collateral for a stablecoin loan, and borrowed stablecoins are assigned to selected decentralized finance strategies that generate the vault’s return. Cryptonews.net adds that Kraken says the displayed APY is based on a trailing seven-day average and that the rates are not guaranteed, with withdrawals available at any time subject to a three-day waiting period.
Risks, access limits, fees
Kraken’s vault structure introduces leverage because the deposited token is used as collateral to borrow stablecoins, and Crypto News says a steep fall in the value of SPYx, QQQx, or NVDAx could force the strategy to close positions quickly. Crypto News also warns that losses from liquidation, bad debt, or severe market moves are shared proportionally among users of the affected vault, and that customers may lose part or all of their initial deposit with neither the principal nor the rewards insured or guaranteed by a bank or government protection program.
Cointelegraph reports that the xStocks vaults are available to eligible Kraken clients in the European Economic Area and other markets, but are excluded in the United States, United Kingdom, Canada, Australia and the United Arab Emirates. Cryptonews.net says the vaults carry a 25% performance fee on earnings, applied at the protocol level, and that Kraken displays an APY already net of that charge.