Kraken, a well-known crypto exchange, has recently revealed its plan to dive into the world of decentralized finance (DeFi) with the launch of Ink, a new Ethereum layer-2 network. This network, based on the Optimism Superchain, aims to revolutionize how users trade, borrow, and lend tokens without the need for intermediaries.
The founder of Ink, Andrew Koller, expressed his excitement about the project, highlighting the collaboration with developers and the community to create a vibrant ecosystem. The goal is to make it easier for crypto users to access DeFi applications seamlessly. The testnet for developers is set to launch later this year, with a full rollout expected for both retail and institutional users in the first quarter of 2025.
Kraken’s choice of the Optimism Superchain was strategic, as it offers robust security infrastructure provided by Ethereum. This decision places Ink within the Superchain ecosystem, allowing it to benefit from shared security, governance, and values to enhance Ethereum scalability. This move aligns with other major crypto firms like Coinbase and Uniswap, who have also adopted similar technology for their layer-2 networks.
Despite the growing adoption of Optimism technology, Arbitrum remains the dominant layer-2 network, according to data from DeFillama. However, Kraken is confident in the potential of Ink to make a significant impact in the DeFi space.
In addition to the launch of Ink, Kraken has been expanding its product portfolio to solidify its position in the industry. This includes introducing kBTC, a wrapped Bitcoin product, to enhance the availability of top cryptocurrencies in DeFi activities. Each kBTC token is backed 1:1 by Bitcoin held securely in Kraken’s custody.
Moreover, Kraken has integrated EigenLayer to enable users to restake their ETH directly from the platform. This move aims to streamline the staking process for Ethereum holders. Additionally, the exchange has launched a derivatives trading platform in Bermuda after acquiring a Class F Digital Business License from the Bermuda Monetary Authority (BMA).
Overall, Kraken’s foray into the DeFi space with the launch of Ink signals its commitment to innovation and growth within the crypto industry. By leveraging the Optimism Superchain technology, the exchange aims to provide users with a seamless and secure platform to engage in DeFi activities, further expanding the boundaries of decentralized finance.