- Katana mainnet launch is around the corner after over $200 million in productive DeFi deposits.
- Katana’s VaultBridge and CoL mechanisms will power yield and liquidity efficiency.
- Katana supports cross-chain assets like SOL, XRP, and SUI on-chain.
Katana, a new DeFi-centric layer-2 blockchain built on Ethereum, has people on tentacles amid its highly anticipated mainnet launch after drawing more than $200 million in active deposits and setting a new benchmark for liquidity-focused networks this year.
The launch, which comes just weeks after Katana’s public reveal, is causing excitement across the crypto community due to its impressive capital inflow and unique design, positioning it as one of the most significant L2 rollouts of 2025.
According to the Katana Foundation, the network is engineered to deliver scalable, high-yield decentralised finance applications while tackling long-standing liquidity inefficiencies in the Ethereum ecosystem.
A launch powered by liquidity
Katana has accumulated over $200 million in productive total value locked, a term the protocol uses to describe capital actively deployed in yield-generating strategies.
This approach marks a significant departure from traditional DeFi metrics, which often include idle capital when reporting TVL, thereby overestimating real usage.
The protocol’s growth was accelerated by strong pre-deposit activity, which climbed from $75 million in early June to over $232 million by launch day, highlighting a surge in user interest and institutional curiosity.
At its core, Katana promises to transform how capital flows across DeFi by integrating a variety of yield sources directly into its architecture rather than relying solely on token incentives.
DeFi tools built for efficiency
Katana’s infrastructure includes two standout mechanisms: VaultBridge and Chain-owned Liquidity (COL), both of which are designed to convert idle assets into revenue-generating positions.
VaultBridge allows bridged assets like ETH, USDC, USDT, and wBTC to be deployed into off-chain yield-bearing strategies on Ethereum, before routing the returns back into Katana’s native DeFi pools.
This setup ensures that user assets do not remain static but are constantly cycled through revenue-generating avenues, thereby increasing capital efficiency across the platform.
Meanwhile, Katana’s Chain-owned Liquidity model recycles 100% of its sequencer fees into its own liquidity reserves, creating a self-sustaining liquidity loop.
These innovations aim to reduce dependence on unsustainable token emissions while ensuring users benefit from deeper liquidity and better pricing execution.
Partnerships and cross-chain access
In addition to its Ethereum-native features, Katana’s cross-chain capabilities allow users to interact with assets outside of the EVM universe, including SOL, XRP, and SUI, which are tradable on-chain through its launch partner, Universal.
Universal has also integrated with Coinbase Prime to offer institutional-grade custody and minting services, eliminating the need for pre-seeded liquidity on decentralised exchanges.
This move signals Katana’s ambition to become a cross-chain liquidity hub while still leveraging Ethereum’s robust security and composability.
The platform also integrates with major DeFi players like decentralised exchange Sushi and lending protocol Morpho, extending its utility across the broader DeFi ecosystem.
Incentives aligned with growth
To attract early adopters, Katana has launched a series of incentives, including randomised NFT loot boxes known as “Krates” and a distribution of 70 million KAT tokens to early liquidity providers.
Additionally, roughly 15% of Katana’s total KAT token supply has been set aside for an airdrop to Polygon token stakers, including holders of liquid staking derivatives.
These incentives aim to reward early engagement while tying Katana’s success to the broader modular Ethereum landscape, particularly through its relationship with Polygon’s Agglayer ecosystem.
Speaking to Cointelegraph, Polygon Labs CEO Marc Boiron noted that Katana’s design prioritises active capital deployment, sustainable fee capture, and long-term DeFi growth.
He emphasised that Katana does not just aggregate liquidity—it puts that liquidity to work in ways that enhance usage, deepen pools, and sustain user incentives.
With its emphasis on “productive TVL” and built-in yield mechanics, Katana presents a different blueprint for DeFi infrastructure—one that moves beyond hype and embraces sustainable economics.
As traders and institutions seek deeper liquidity, higher yields, and safer on-chain experiences, Katana’s mainnet debut may serve as a turning point in how DeFi platforms are designed, evaluated, and adopted.
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