Kraken-Backed Ink Unveils DeFi Lending Platform Tydro

Ink, an Ethereum Layer 2 blockchain, has just rolled out a new lending and borrowing platform called Tydro. This marks the blockchain developed by Kraken and the Ink Foundation, a major push into the decentralized finance (DeFi) space.

Kraken said it plans to integrate Tydro directly into its main exchange, making it easier for users to access decentralized finance opportunities.

Tydro Launches on Ink  with Rewards for Early Users

Tydro is created as a modified version of Aave v3 to work with the INK token. It also acts as a basic platform for decentralized finance applications on the Ink network. 

The newly launched protocol builds on Aave’s well-established lending engine. This secured infrastructure provides users with a secure and tested environment for lending and borrowing digital assets. 

On this platform, Tydro adds a special reward system using the INK token to encourage people to join early and provide liquidity. Users earn points that can be claimed for future airdrops. This way, early participants are rewarded for using the platform.

Tydro Kicks Off with Lending for Wrapped ETH, BTC, and Stablecoins

At launch, Tydro will offer non-custodial lending markets for a variety of assets. This includes wrapped Ethereum (ETH), Kraken’s wrapped Bitcoin (BTC), and a selection of stablecoins. This initial offering is intended to establish a strong liquidity base while providing users with immediate DeFi opportunities. 

The platform also plans to add yield-bearing assets and liquid staking tokens in future updates, expanding options for users to earn returns on their holdings.

Aave, Tydro’s underlying protocol, is the largest on-chain lending platform, managing over $75 billion in net deposits and more than $30 billion in active loans. The launch of Tydro supports Ink’s first major use case, a concentrated liquidity pool on the blockchain. 

This move is helping drive adoption and increase total value locked (TVL) on Ink, which recently rose to over $140 million, according to Dune Analytics.

INK Token Powers Tydro as Kraken Expands DeFi Offerings

As announced, the INK token will not play a role in governance decisions on the Ink network. However, it is central to Tydro’s strategy for bootstrapping liquidity and encouraging adoption. 

The token is expected to power many lending and trading activities across the platform. This will help create a system where Ink-native capital moves smoothly and naturally within the ecosystem.

Kraken plans to use INK across its main exchange products. These includes the Kraken Drops program, so users can earn airdrops and take part in the ecosystem. Adding Tydro to its core exchange shows Kraken’s bigger push into DeFi and blockchain innovation. 

The exchange also plans to go public as early as the first quarter of 2026, while competitors like Coinbase are expanding their own decentralized trading options for U.S. users.