Sentora Data Points to Longer Holding Periods in Kraken’s DeFi Earn Strategies

Sentora's analysis of Kraken's DeFi Earn strategies, reported by Korea IT Times on October 14, suggests that users are holding onto their funds for longer periods, contradicting the notion that DeFi users frequently shift their assets to seek higher returns. The study, based on proprietary address-level data, reveals that 66.6% of addresses that deposited into the Advanced strategy still had a balance after 90 days, with retention rates of 76% after 30 days and 86.9% after seven days.

Median holding periods were found to exceed 100 days across all three USDC strategies, with the Balanced strategy showing the longest at 144 days. However, capital retention was notably lower, with only 47.6% of deposited capital remaining after 90 days in the Advanced strategy, compared to 19.2% for Boosted and 10.3% for Balanced.

This discrepancy indicates that while users are staying longer, they are also depositing smaller amounts, highlighting the need to consider both holding periods and capital retention separately. Kraken's DeFi Earn platform has attracted over $800 million in deposits and 100,000 depositors since its launch in January, with Sentora noting that product design, risk management, and the balance between risk and returns could influence these retention rates.

The findings emphasize the importance of evaluating these metrics together to gain a more comprehensive understanding of user behavior and product usage.

Brief written by urgent.news from Korea IT Times's own syndicated text. Machine-written — may contain errors; check the original before relying on it.