Kraken's Layer 2 blockchain, Ink, has experienced a dramatic increase in total value locked (TVL), surging nearly 3,800% from $6.42 million on October 15 to $249 million. This growth is primarily attributed to the Tydro protocol, a non-custodial lending platform launched by the Ink Foundation, which mirrors Aave's functionality. Tydro alone accounts for over 97% of the TVL increase, fueled by a significant stablecoin mint from USDT0 and attractive supply APYs on USDG, a stablecoin supported by Kraken and other major entities. Despite the impressive TVL growth, Ink's network activity has seen a decline, with daily active addresses dropping by more than 50% since March 24. This suggests that while financial metrics are improving, user engagement on the network is waning.