Kraken to launch "Ink," a Layer 2 blockchain without native token, to simplify DeFi
Highlights:
- Kraken to launch its Layer 2 blockchain, "Ink," early next year to support DeFi applications.
- Unlike competitors, Kraken will not issue a native token for its blockchain.
- Ink aims to make decentralized finance (DeFi) more user-friendly and accessible, focusing on seamless integration with Kraken's wallet app.
Kraken launches "Ink" blockchain without a native token
Kraken, one of the world’s oldest cryptocurrency exchanges, is expanding its footprint in decentralized finance (DeFi) with the launch of its Layer 2 blockchain, Ink, set to go live early next year. Unlike its rivals Binance and Coinbase, Kraken’s blockchain will not feature a native token, making it stand out in the competitive DeFi space. Ink will host decentralized applications (dApps) that facilitate token trading, borrowing, and lending without intermediaries.
According to Andrew Koller, the blockchain’s founder, the Ink network will enter its testnet phase by the end of this year, allowing developers to build DeFi applications ahead of its mainnet launch in the first quarter of next year. The platform will serve both retail and institutional users, providing a user-friendly alternative to current DeFi offerings.
Introducing Ink.
A single, integrated DeFi ecosystem here to make onchain easier.
Join us: https://t.co/kKPhCeRLFf pic.twitter.com/tH4nqENKZ7
Making DeFi more accessible with an intuitive interface
Kraken’s Ink blockchain is designed to simplify DeFi, integrating seamlessly with Kraken’s existing wallet app. Historically, DeFi platforms have been seen as too complex for widespread adoption, but Kraken aims to break that mold. Koller emphasized that Ink’s user interface will be "Apple-esque," offering a more intuitive experience for users who may find current DeFi platforms daunting.
At launch, Ink will feature over a dozen DeFi applications, including decentralized exchanges and aggregators. It will focus on making yield generation and other DeFi functionalities easier and more affordable. In the future, Kraken plans to expand support to include real-world assets and more advanced lending applications.
Following in Coinbase’s footsteps, without a native token
Kraken’s foray into Layer 2 solutions mirrors Coinbase’s successful Base blockchain, which saw a 300% increase in transaction volume in Q2, driven by DeFi apps and meme coin trading. However, Kraken’s approach diverges by not issuing a native token, a significant departure from Binance’s and Coinbase’s strategies.
Ink will also serve as its own sequencer initially, centralizing operations for increased revenue. Over time, Kraken plans to decentralize this role, allowing multiple parties to share responsibilities, similar to Coinbase's approach. Kraken expects to monetize Ink’s sequencer, potentially paralleling the $53 million revenue Coinbase generated from Base's sequencer in Q2.
Kraken eyes IPO amid regulatory pressures
Founded in 2011, Kraken has been exploring the possibility of going public while expanding its global presence. However, its future may be shaped by evolving U.S. regulations. The exchange has faced legal scrutiny, including charges from the SEC in 2022 for operating an unregistered broker-dealer and settling issues related to its staking services in early 2023. Despite these challenges, Kraken continues to innovate, recently launching Wrapped Bitcoin (kBTC), an ERC-20 token fully backed by Bitcoin, to enhance DeFi adoption.
As Kraken prepares for Ink’s launch, it remains committed to providing a streamlined, accessible DeFi experience, further solidifying its position in the growing decentralized finance ecosystem.
0 Comments