Decentralized Finance (DeFi) platform, 'Katana', is initiated on a private mainnet by Polygon and GSR.

Decentralized Finance (DeFi) platform, 'Katana', is initiated on a private mainnet by Polygon and GSR.

Katana, a New DeFi-Focused Blockchain, Aims to Consolidate Liquidity

Polygon Labs and cryptocurrency trading firm GSR have joined forces to introduce Katana, a novel blockchain designed to tackle a significant issue in the decentralized finance (DeFi) sector: scattered liquidity. The platform is currently in a private phase, with a public launch slated for late June 2025.

Katana is the first chain on Agglayer to utilize the CDK OP Stack, paving the way for a multistack era within Polygon's zero-knowledge-powered interoperability layer. The newly developed chain has received support from Conduit, which manages the rollup and sequencing infrastructure. Katana is also a graduate of Polygon's Agglayer Breakout Program, an initiative that supports the launch of high-impact projects.

In most DeFi platforms, liquidity is distributed thinly across various applications, leading to inefficient trading and earning processes. Katana seeks to rectify this by centralizing liquidity and optimizing it for higher revenue generation. Upon its launch, it will connect with top DeFi protocols such as lending app Morpho, exchange Sushi, and trading platform Vertex. It will also support key assets like AUSD stablecoin, liquid-staked Bitcoin (LBTC) from Lombard, and weETH from Ether.Fi.

To boost returns within the Katana ecosystem, the platform will utilize VaultBridge, a bridging and yield-generating protocol. This system routes bridged assets into overcollateralized Ethereum-based strategies, with the resulting yield reinvested back into the Katana ecosystem, proportionally distributed to users based on their deposit share.

Polygon Labs CEO Marc Boiron believes this model will minimize dependence on short-term incentives and offer stable, sustainable returns. He states that such a move will instill long-term confidence in DeFi users and institutions alike. Katana's user-centric approach transforms inefficiencies into advantages, according to Boiron.

To encourage adoption, 15% of KAT tokens will be awarded to POL stakers on Ethereum as a reward for supporting the Polygon ecosystem early on. Users can also pre-deposit ETH, USDC, USDT, or WBTC during Katana's private mainnet phase to earn KAT tokens, which will vest over the next nine months.

Katana will integrate with Chainlink's oracle network and Universal's cross-chain platform, allowing access to assets beyond the native chain, such as XRP, SOL, and SUI. GSR, with its decade-long experience in institutional crypto markets, will support Katana through liquidity provisioning, cross-chain execution, and business development via its venture arm.

In essence, Katana aspires to revolutionize DeFi by providing a dense, unified liquidity pool, consistent yield, and a seamless cross-chain experience. This approach promises a more reliable means for both retail and institutional players to engage with decentralized finance.

Additionally, the Dubai Land Department and Ctrl Alt have launched tokenized real estate on the XRP Ledger, offering another significant development in the blockchain and DeFi sectors.

1. Katana, the new blockchain focused on decentralized finance (DeFi), aims to revolutionize the sector by consolidating liquidity, utilizing technology like the CDK OP Stack, and connecting with top DeFi protocols such as Morpho, Sushi, and Vertex.
2. To boost returns within the Katana ecosystem, the platform will utilize VaultBridge, a bridging and yield-generating protocol that routes bridged assets into Ethereum-based strategies and reinvested back into the Katana ecosystem, thereby offering sustainable returns for users.
3. In the broader context, Katana's user-centric approach, incorporating elements like DeFi, investing, finance, technology, and blockchain, represents a significant stride in providing a more reliable means for both retail and institutional players to engage with decentralized finance, echoing the aims of other platforms like the XRP Ledger, which has recently launched tokenized real estate.

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