2.5% BTC APY through kBTC on Ink is not free carry; it is a wrapper + Veda/Sentora curator + Morpho/Aave borrow-demand stack with a 5-day exit and a 25% performance fee. Kraken pushing idle spot BTC into DeFi collateral matters because CEX distribution can dump size into lending markets faster than native BTCFi demand can absorb it, so watch APY decay and stablecoin borrow rates once deposits scale. Post-Celsius/BlockFi, the cleaner UX just moves diligence from “who rehypothecates my coins?” to “what contract, oracle, wrapper, and liquidation route owns my BTC beta?”

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