What is Katana?

Katana is a decentralized finance (DeFi)-focused blockchain.

Key Features and Goals

• Liquidity Aggregation and Optimization: Katana aggregates liquidity from multiple leading DeFi protocols such as Morpho (lending), Sushi (decentralized exchange), and Vertex (perpetual DEX). This consolidation helps reduce price slippage and provides deeper, more stable liquidity pools, which is especially important for institutional investors.

• Yield Enhancement: Katana offers higher user yields by collecting yield from all potential sources and reinvesting it. It uses a tool called VaultBridge that transforms user assets into Ethereum lending positions to generate interest, which is then reinvested and compounded back on the Katana platform. This approach reduces reliance on short-term incentives and aims to create sustainable, consistent returns.

• Cross-Chain and Asset Support: The chain supports various assets including stablecoins like AUSD, liquid-staked wrapped Bitcoin (LBTC), and yield-bearing Ether (weETH). It also integrates with Universal’s cross-chain platform to provide access to blue-chip assets such as XRP, SOL, and SUI that are not natively available on Katana.

• Technology Stack: Katana is built using a custom version of the OP Stack called cdk-opgeth and runs on Polygon’s zero-knowledge-powered Agglayer, which enhances interoperability and security. It also incorporates Conduit’s rollup and sequencing infrastructure and Chainlink’s decentralized oracle network for accurate price feeds.