Katana

Katana Network is a specialized, DeFi-focused Layer-2 blockchain designed to address the fragmentation of liquidity and the sustainability of yields within the decentralized finance ecosystem. Incubated by Polygon Labs and GSR, Katana is built on the OP Stack and integrated with Polygon's AggLayer, positioning itself as a high-performance execution environment that unifies liquidity across multiple chains. The network's architecture is 'opinionated,' meaning it strategically integrates a curated set of core decentralized applications—such as Sushi for spot trading, Morpho for lending, and Vertex for derivatives—to concentrate liquidity and optimize capital efficiency for users and institutions alike.

A key innovation of the Katana Network is its 'VaultBridge' mechanism, which allows bridged assets to remain productive by deploying them into yield-bearing strategies on Ethereum Layer-1, with the generated returns flowing back to users on the Katana Layer-2. Additionally, the network implements 'Chain-Owned Liquidity' (CoL), where sequencer fees and other network revenues are reinvested into the ecosystem's liquidity pools rather than being extracted. This model aims to create a self-sustaining 'DeFi flywheel' that aligns the interests of users, protocols, and the network itself, fostering a robust environment for sustainable growth and institutional adoption.