Kiln launches DeFi service for stablecoin rewards, starting with Crypto.com's web3 wallet users

Quick Take

  • Staking platform Kiln has launched “Kiln DeFi,” simplifying access to stablecoin rewards and enabling users to generate an additional yield from their digital assets.
  • Crypto.com DeFi Wallet is the first to integrate with the new service, allowing it to offer stablecoin rewards to its users via leading DeFi lending protocols.

Institutional crypto staking platform Kiln has launched “Kiln DeFi,” designed to simplify access to stablecoin rewards and enable users to generate an additional yield from their digital assets.

Earning non-custodial rewards for stablecoin assets usually requires users to interact with DeFi protocols directly, which can be “complicated, burdensome and pose security risks," Kiln argued in a statement shared with The Block. Alternatively, many users simply opt for custodial solutions from centralized platforms, which may increase regulatory risk and associated fees, the team said.

Instead, Kiln DeFi enables its integrators to offer stablecoin rewards to their users from leading DeFi lending protocols such as Aave, Morpho and Compound via native workflows within their wallets or platforms, it added.

“Access to non-custodial reward opportunities for stablecoins is a crucial next step in our vision to democratize digital asset value creation,” Kiln co-founder and CEO Laszlo Szabo said. “By allowing our customers to seamlessly facilitate rewards through blue-chip borrowing and lending protocols, we are eliminating another layer of complexity for users and our integrators and empowering them to access the benefits of DeFi.”

Stablecoins represent a total market capitalization of more than $171 billion, according to The Block’s data dashboard, with DeFi protocol stablecoin reward rates in the 4.5% to 8% range on reputable decentralized lending platforms.

Crypto.com DeFi Wallet’s integration

Crypto.com DeFi Wallet, a non-custodial web3 wallet developed by the centralized crypto exchange, is the first integrator to launch with Kiln’s new service.

“The integration with Kiln DeFi represents another significant step forward in our commitment to providing our users with greater transparency and easier access to DeFi opportunities,” Crypto.com SVP Esther Wong said. “Offering more stablecoin reward options will further empower our users to earn yield on their assets with confidence and ease.”

What is Kiln?

Kiln’s staking platform allows institutional clients to stake assets and offer white-label solutions to their customers. Though it supports multiple proof-of-stake blockchains, the majority of Kiln’s staked assets are on Ethereum, worth over $3.9 billion, according to its Dune Analytics dashboard, enabling native ether staking below the 32 ETH minimum. It is also the largest operator of Ethereum validator nodes, according to Rated — representing some 4.4% of the Ethereum network.

Utilizing specialized smart contracts, Kiln enables crypto users to stake smaller amounts. It permits pooling stakes to collectively reach the 32 ETH minimum, offering an alternative to similar flexible staking options from liquid staking protocols like Lido and Rocket Pool, collaborating with Crypto.com on a similar integration last year.

In May, Kiln unveiled liquid staking token (LST) restaking on EigenLayer via Kiln’s Ledger Live dApp.

Earlier this year, Kiln announced it had closed a $17 million funding round led by 1kx, with participation from Crypto.com, IOSG, Wintermute Ventures, KXVC and LBank to fund its global expansion plans, bringing its total funding to $35 million.


Disclaimer: The Block is an independent media outlet that delivers news, research, and data. As of November 2023, Foresight Ventures is a majority investor of The Block. Foresight Ventures invests in other companies in the crypto space. Crypto exchange Bitget is an anchor LP for Foresight Ventures. The Block continues to operate independently to deliver objective, impactful, and timely information about the crypto industry. Here are our current financial disclosures.

© 2024 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

About Author

James Hunt is a reporter at The Block and writer of The Daily newsletter, keeping you up to speed on the latest crypto news every weekday. Prior to joining The Block in 2022, James spent four years as a freelance writer in the industry, contributing to both publications and crypto project content. James’ coverage spans everything from Bitcoin and Ethereum to Layer 2 scaling solutions, avant-garde DeFi protocols, evolving DAO governance structures, trending NFTs and memecoins, regulatory landscapes, crypto company deals and the latest market updates. You can get in touch with James on Telegram or 𝕏 via @humanjets or email him at [email protected].

Editor

To contact the editor of this story:
Adam James at
[email protected]