Polygon Labs and GSR Launch DeFi-Focused Blockchain
Polygon Labs and crypto trading firm GSR have jointly launched Katana, a DeFi-optimized blockchain designed to address liquidity fragmentation in decentralized finance. Currently in its private mainnet phase, Katana aims to unify liquidity across lending, trading, and yield-bearing strategies by integrating with established DeFi protocols such as Sushi, Morpho, and Vertex. Built using Polygon's AggLayer and the OP Stack, Katana seeks to provide a seamless, high-yield environment for both retail and institutional investors.
The Katana Foundation, a nonprofit organization, leads the development and adoption of the network. To incentivize early participation, users can pre-deposit assets like ETH, USDC, USDT, and WBTC to earn KAT tokens, the network's governance and utility token. Additionally, approximately 15% of KAT tokens will be airdropped to POL stakers on Ethereum, rewarding early supporters of the Polygon ecosystem.
Katana also introduces VaultBridge, a protocol that routes bridged assets into overcollateralized Ethereum-based strategies via Morpho, generating yield that is compounded back into the Katana ecosystem. This approach aims to provide sustainable returns and reduce reliance on short-term incentives. The public mainnet launch of Katana is scheduled for late June 2025, marking a significant step in Polygon's vision for a unified, interoperable DeFi ecosystem.
