Chaos Labs hits $40M on Kraken
Chaos Labs said its AI‑powered Balanced & Boosted vaults surpassed $40M in deposits and are now live on Kraken DeFi Earn with instant redemptions, signalling institutionalized yield product distribution (x.com). Instant redemptions on a custodial venue like Kraken change liquidity dynamics for on‑chain vaults and could compress funding spreads.
Chaos Vaults went live on Kraken’s DeFi Earn on January 26, 2026, marking the public debut of the Balanced and Boosted USDC strategies alongside an Advanced option. (streetinsider.com)) The vaults use Veda’s vault infrastructure and route deposited funds into Circle USDC on Kraken’s Ink L2, with allocations into on‑chain lenders such as Aave, Morpho, Sky and Tydro. (veda.tech)) Kraken initially rolled DeFi Earn out across 48 U.S. states (excluding New York and Maine), Canada and the European Economic Area to eligible users. (blog.kraken.com)) Kraken’s product documentation and multiple reporting outlets note a performance fee on vault earnings; outlets report that the exchange applies a 25% fee to vault rewards. (coinspeaker.com)) Veda reported that Kraken’s Veda‑powered DeFi Earn vaults surpassed $100 million in total deposits across more than 24,000 users as of March 9, 2026. (veda.tech)) Chaos Labs highlights that its risk and data stack — led by CEO Omer Goldberg — has underpinned over $5 trillion in transaction volume across protocols prior to launching its curated vaults. (prnewswire.com)) Kraken’s UX pledges near‑instant withdrawals when liquidity is available, while the Balanced/Boosted strategies are represented as usually instant deallocations and the Advanced strategy can include a multiday deallocation window (reported as a 1‑day wait in published breakdowns). (kraken.com))
