Katana Network: the brand new frontier of DeFi

Uncover key highlights within the NFT area. This article dives into: “Katana Network: the new frontier of DeFi”.

Katana Network, the DeFi-native blockchain incubated by GSR and Polygon Labs, has formally launched its mainnet, opening the doorways to customers and setting a brand new customary for all the sector.

In lower than a month from the general public presentation, the community has already gathered over 240 million {dollars} in “productive TVL”, a end result that distinctly units it other than different blockchains at the moment in the marketplace.

The revolutionary idea of Katana’s “productive TVL” in DeFi

In the DeFi panorama, probably the most used parameter to measure the success of a community is the TVL (Total Value Locked).

However, this metric usually proves deceptive: many belongings stay inactive, with out producing actual worth for the chain or for the functions constructed on it.

Katana overturns the paradigm by introducing the idea of productive TVL, which is the worth successfully employed in productive DeFi methods.

On Katana, each deposited asset is put to work from day one, remodeling passive capital into an energetic engine of development.

To deal with the structural issues of DeFi – such because the shortage of liquidity, reliance on unsustainable incentives, and the continual outflow of capital – Katana adopts superior monetary devices.

The first is VaultBridge, which permits producing yield on belongings deposited on Ethereum, routing them in the direction of remunerative positions.

The second is the chain-owned liquidity (CoL) mannequin, which allows the community to retain 100% of the sequencer charges and convert them into everlasting and self-sustaining liquidity reserves.

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The launch of Katana is accompanied by vital yield farming incentives, together with token rewards for liquidity suppliers on platforms like Morpho and Sushi.

The community construction multiplies the sources of yield, combining returns from VaultBridge, chain-owned liquidity, and AUSD treasury yields, to supply sustainable and better APRs.

Users are incentivized to actively take part: solely those that deploy their belongings within the core DeFi functions can maximize positive factors.

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Katana, though constructed on Ethereum, is agnostic relating to asset ecosystems. Thanks to the collaboration with Jito, a high-performance liquid staking protocol, the community goals to supply the best returns even on belongings exterior of Ethereum, reminiscent of SOL.

A community designed for capital effectivity

On Katana, each asset deposited in apps like Morpho or Sushi – or utilized in functions constructed on them – generates actual yield via curated methods, coordinated DeFi primitives, and native incentive programs.

VaultBridge directs belongings like ETH, USDC, USDT, and wBTC in the direction of productive positions on Ethereum, whose yield might be reinvested in Katana’s DeFi swimming pools to reward probably the most energetic customers.

The chain-owned liquidity mannequin permits for straight reinvesting the sequencer charges into the liquidity swimming pools, making certain a secure and everlasting base for customers and builders, no matter bull and bear market cycles.

Additionally, Agora’s AUSD stablecoin captures the yield from U.S. Treasury and repo off-chain, redirecting it to additional improve the yield in DeFi swimming pools.

“Katana represents the culmination of the value created by blockchains in DeFi,” says Marc Boiron, co-contributor of the community.

“By aligning the network’s incentives with user outcomes, we create a sustainable model that benefits both individual DeFi users and institutional investors.

All sequencer fees return to chain-owned liquidity, creating the depth and stability needed by both retail and institutional entities.”

According to the info from growthepie.com, the Layer 2 of Ethereum have generated vital web charges from the sequencers within the final 12 months: roughly 73 million {dollars} for Base, 19 million for Arbitrum, and seven million for Optimism, after deducting the settlement prices on Ethereum.

The native token KAT is the beating coronary heart of the Katana ecosystem. Users can earn KAT instantly via liquidity mining on core apps like Morpho and Sushi, accumulate them of their wallets, and lock them to acquire vKAT and take part in staking.

The token will develop into transferable on the time of itemizing on exchanges, anticipated inside just a few months of the mainnet launch and in any case no later than February 20, 2026.

With the expansion of the community and the rise of community results, KAT holders will have the ability to contribute to the safety of the community and earn a share of the sequencer charges, VaultBridge yields, and the revenues generated by the stablecoin.

Strategic Partnerships and Interoperability

Unlike conventional blockchains, which fragment liquidity amongst competing protocols, Katana concentrates liquidity on chosen, high-quality DeFi primitives.

At launch, the community integrates Morpho for lending and borrowing, Sushi for spot buying and selling, and partnerships with main suppliers reminiscent of Agora (AUSD stablecoin), Lombard (liquid staked BTC), ether.fi (staked ETH), Jito (staked SOL), BitVault (BTC-backed cash), and Universal for cross-chain minting of belongings.

Thanks to the Universal companion, Katana allows on-chain buying and selling of blue-chip crypto belongings like SOL, XRP, SUI and others proper at launch.

The integration with Coinbase Prime additionally permits minting natively on Katana of every other custodial asset, with out the necessity for preliminary liquidity on DEX.

“While other chains measure success by the number of apps, we focus on capital efficiency, active users, and transaction volume,” emphasizes Jakob Palmstierna, President of GSR.

“Users do not need millions of financial apps, but the best ones that work together to improve yield. And this is exactly what Katana offers.”

Katana, a graduate of the Agglayer Breakout Program, has introduced an airdrop of roughly 15% of the KAT tokens to POL stakers, together with liquid staking tokens, as a gesture of returning worth to the Polygon ecosystem.

The Katana Foundation, the non-profit group behind the venture, goals to supply the very best DeFi expertise to each sort of person.

Thanks to modern mechanisms like VaultBridge, Chain-Owned Liquidity, and a deal with excellence protocols, Katana goals to maximise worth for energetic customers, overcoming the constraints of conventional blockchain fashions.

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