Katana, a new layer-2 blockchain focused on decentralized finance (DeFi), has launched its mainnet with significant momentum, boasting over $200 million in active DeFi deposits. This makes it one of the most capitalized layer-2 network debuts of the year. Developed by the Katana Foundation, a graduate of the Polygon Agglayer Breakout Program, Katana is designed to support high-yield DeFi activity at scale.
Katana's primary goal is to address the liquidity demands of the Agglayer ecosystem while meeting the needs of users for deeper liquidity and higher yields. Unlike traditional models that rely on new tokens to incentivize participation, Katana integrates yields from multiple sources, creating a self-circulating economic engine. These sources include VaultBridge strategies, which enable users to earn native Ethereum yields within Katana's ecosystem, Chain-owned Liquidity (CoL) reserves, and AUSD-backed treasury flows.
One of Katana's key innovations is its focus on "productive TVL" (Total Value Locked), which only accounts for capital actively deployed into yield-generating strategies or core DeFi protocols, offering a more accurate measure of capital efficiency compared to traditional TVL metrics. This approach ensures that assets aren't just idle but are actively driving real usage, sequencer fees, and app-level fees, all of which contribute to sustaining deeper liquidity.
Katana integrates with decentralized exchange Sushi and lending protocol Morpho, offering incentives to liquidity providers. Through its launch partner, Universal, Katana allows for the trading of non-Ethereum Virtual Machine tokens like SOL, XRP, and SUI directly on-chain. Universal has also integrated with Coinbase Prime to support institutional-grade custody and minting of supported assets without the need for decentralized exchange-based pre-seeded liquidity.
According to the Katana Foundation, the network is engineered to deliver scalable, high-yield decentralized finance applications while tackling long-standing liquidity inefficiencies in the Ethereum ecosystem. To further incentivize participation and deepen ties to the broader modular Ethereum ecosystem, Katana has allocated approximately 15% of its KAT token supply for an upcoming airdrop to Polygon token stakers, including those holding liquid staking derivatives.
Katana also integrates AUSD, a stablecoin issued by Agora that captures off-chain yield from U.S. Treasuries and repo markets, which is then recycled into Katana's DeFi ecosystem to further enhance returns for users. By layering multiple revenue streams such as on-chain lending, sequencer fees, and real-world asset yield, Katana aims to offer sustainable, baseline yield that does not depend on aggressive incentives or speculative activity.
The launch of Katana's mainnet marks a significant step in addressing some of DeFi's most persistent problems, including low liquidity, unreliable yields, and capital constantly flowing out of the system. By concentrating liquidity across chains and protocols into fewer, more accessible pools, Katana aims to support high-volume, capital-efficient transactions, making it easier for institutions to participate directly in on-chain crypto activities.
