Polygon Labs and crypto trading firm GSR have teamed up to launch Katana, a new DeFi-focused blockchain built to fix one of DeFi’s biggest problems: scattered liquidity. It’s already live in a private phase, with a public launch planned for late June 2025.
Katana is the first chain on Agglayer to use the CDK OP Stack, ushering in a multistack era for Polygon’s zero-knowledge-powered interoperability layer.
The chain has been developed with support from Conduit, which handles the rollup and sequencing infrastructure, and is a graduate of Polygon’s Agglayer Breakout Program, which helps launch high-impact projects.
Most DeFi platforms have liquidity spread thin across different apps, which makes trading and earning less efficient. Katana fixes that by bringing liquidity together in one place and making it work harder to generate real returns.
At launch, it will connect with some top DeFi protocols — including lending app Morpho, exchange Sushi, and trading platform Vertex. It’ll also support key assets like the AUSD stablecoin, liquid-staked Bitcoin (LBTC) from Lombard, and weETH from Ether.Fi.
Katana will also use VaultBridge, a bridging and yield-generating protocol, to route bridged assets into overcollateralized Ethereum-based strategies. The resulting yield is then compounded back into the Katana ecosystem, distributed proportionally based on deposit share. For example, if Katana contributes 20% of VaultBridge’s total deposits, it receives 20% of the yield.
According to Polygon Labs CEO Marc Boiron, this model reduces reliance on short-term incentives and offers stable, sustainable returns — a move he says will bring long-term confidence to DeFi users and institutions alike. Katana’s user-centric model turns inefficiencies into advantages, Boiron said.
To boost adoption, 15% of KAT tokens will be given to POL stakers on Ethereum as a reward for backing the Polygon ecosystem early on. Right now, users can also pre-deposit ETH, USDC, USDT, or WBTC during Katana’s private mainnet phase to earn KAT tokens, which will unlock over the next nine months.
Katana is also integrating with Chainlink’s oracle network and Universal’s cross-chain platform, allowing access to “blue-chip assets” like XRP, SOL, and SUI that aren’t native to the chain.
GSR, which has over a decade of experience in institutional crypto markets, will support Katana through liquidity provisioning, cross-chain execution, and business development via its venture arm.
In short, Katana aims to reshape DeFi with deep, unified liquidity, consistent yield, and a seamless cross-chain experience, giving both retail and institutional players a more reliable way to engage with decentralized finance.
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