What Is Katana?
Katana is an EVM-compatible blockchain.
Katana is a Layer 2 blockchain specifically designed to enhance the decentralised finance ecosystem by tackling the prevalent issues of fragmented liquidity and unsustainable yields. Developed in collaboration with Polygon Labs and GSR, Katana provides a comprehensive platform that integrates liquidity aggregation, yield optimization, and privacy features. By creating a unified environment, it aims to offer deeper liquidity and more reliable returns for both individual and institutional users. The native token of the Katana network is KAT, which is utilized for governance, fee sharing, and various incentive programs within the ecosystem.
At its core, Katana operates on Polygon’s Agglayer, which allows for seamless interoperability between different blockchains. This architecture enables Katana to consolidate liquidity from various sources into a select few core applications, such as a decentralized exchange (DEX) (Sushi), a lending protocol (Morpho), and a perpetuals decentralized exchange (Vertex). A key feature is the “VaultBridge,” which automatically deploys bridged assets into low-risk, yield-generating strategies on the Ethereum network. The returns from these strategies are then funneled back into the Katana ecosystem to provide sustainable incentives for its users, creating a more capital-efficient and user-friendly DeFi experience.
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