Katana, a new DeFi-focused layer-2 blockchain developed by the Katana Foundation, launched its mainnet roughly three weeks after its public reveal. The network started with over $200 million in pre-deposits, positioning it among the most capitalized debuts recorded for any layer-2 solution this year.

Katana leverages the Polygon Agglayer Breakout Program and is designed explicitly to support high-yield DeFi activities at scale. The platform integrates with decentralized exchanges like Sushi and lending protocols such as Morpho, offering incentives for liquidity providers to enhance its ecosystem.

Katana distinguishes itself by not issuing new tokens for participation incentives. Instead, its architecture produces yields from multiple sources, including VaultBridge strategies (enabling Ethereum yields within Katana), Chain-Ownership Liquidity (CoL) reserves, and AUSD-backed treasury flows.

Universal served as Katana’s launch partner, facilitating direct on-chain trading for non-EVM assets like SOL, XRP, and SUI, integrated with Coinbase Prime for institutional custody and minting without needing pre-seeded liquidity from decentralized exchanges.

“Assets aren’t just idle — they are actively deployed, driving real usage, sequencer fees and app-level fees, all of which flow back into sustaining deeper liquidity,” said Marc Boiron, CEO of Polygon Labs.

Polygon Labs’ Boiron emphasized that Katana aims “to address the liquidity demands of the Agglayer ecosystem while meeting users’ needs for deeper liquidity and higher yields.” Furthermore, approximately 15% of the KAT token supply is designated for an airdrop targeting Polygon (POL) token stakers, including holders of liquid staking derivatives, aiming to strengthen ties with the modular Ethereum ecosystem.

Katana Introduces Productive TVL

The project introduces a novel metric measuring DeFi capital efficiency: productive Total Value Locked (TVL). This contrasts with standard metrics tracking idle deposits, focusing solely on capital actively engaged in yield strategies or core DeFi protocols.

Pre-launch, Katana accumulated over $200 million in productive TVL. The network employs coordinated yield mechanisms where VaultBridge reroutes bridged assets (such as ETH, USDC, USDT, WBTC) into off-chain yield positions, primarily on Ethereum. These generated returns are looped back into Katana’s on-chain DeFi pools, keeping assets in motion. Chain-owned liquidity functions by recycling sequencer fees into reserves.

Explaining the metric’s value, Boiron noted, “‘It provides a clearer picture of what’s really happening behind the scene[s]’…It reflects ‘actual usage, economic efficiency and long-term sustainability.’” The launch follows infrastructure advancements like Agora’s AUSD stablecoin, which channels returns from US Treasury and repo markets into Katana’s protocols.