New L1 Katana Launches Mainnet with $240M in Deposits
The DeFi-focused Layer-1 blockchain Katana has launched its mainnet, having already attracted over $240 million in pre-deposits. The project is distributing 1 billion KAT tokens as incentives to bootstrap liquidity and user activity on the new chain. The launch adds another competitor to the landscape of alternative L1s seeking to draw in DeFi and meme token traders.
- **Incubated by Polygon Labs and GSR: Katana is a DeFi-focused Layer 2 blockchain developed with support from Polygon Labs, which provided the technical foundation, and GSR, a major crypto market maker that advises on user experience and provides liquidity. [Polygon Labs' CEO, Marc](https://vertexaisearch.cloud.google.com/grounding-api-redirect/AUZIYQEsjzooaJsb1VHJXSnCbkiY2oyT5NL_1TScolo8Nk1Os1Bv7es3YBc00ugkwHQ7x9G7RBwjXvQu-YLNCqnKd88EwrGuvxgFcstUwmZpFC3sqWcf3Qh_Dq9p_74kxTnyEOqIvNPkkuKA5Ii1Np5XTattu-dd2yGPXzJsPyn-kiHe8olvw0Fbf7SPC0mnnz6enCqKDMKrVxJpXH4=) Boiron, is also a key contributor to the Katana project. [- "Productive TVL"](https://vertexaisearch.cloud.google.com/grounding-api-redirect/AUZIYQFBBRxRtojANB3oro1jJZmp50UAMB9b2ze_j-8E1d6hiaOsi6P3qt8vWA8-CoUdF9NfHqn9vm7no9usZjCOZthEzGWVztDqcXz40G9Qe9K7q1eiQiTkZ335ElGmP5hrIkZsACfDvn7WuwDzM7O-9pkfYQ==) as a Core Concept: Unlike chains where bridged assets often sit idle, Katana immediately puts them to work. [Through a system called](https://vertexaisearch.cloud.google.com/grounding-api-redirect/AUZIYQGrz_hhc4dicA3n5R7MvNugWwrtPY6qXqjTVuZrK8lXTJm0q_gdN1eHRYdhfx3F_qo5K-CO1NoYpqiqHD3JMtIsSc7mRPG1q-D_vm3duhX5XD_Fqh_NVKsy-qCWXWbcH3jNZxcdPOjC4gyGLtTDA4WSuNC3M04JWuS2XasHxHapRIBeg0HhhwiGHcn_Rrkhkv8cFJX3OYOJorB2Sz9l) VaultBridge, assets like ETH and USDC are deposited into yield-generating strategies on Ethereum, with the returns cycled back to the Katana ecosystem to boost rewards. - Chain-Owned Liquidity (CoL): Katana directs 100% of its net sequencer fees, along with a portion of revenue from core applications, into a reserve that it owns and manages. This CoL is used to deepen liquidity in its foundational DeFi protocols, aiming to reduce slippage and stabilize markets. [- Curated Set of Core](https://vertexaisearch.cloud.google.com/grounding-api-redirect/AUZIYQFBBRxRtojANB3oro1jJZmp50UAMB9b2ze_j-8E1d6hiaOsi6P3qt8vWA8-CoUdF9NfHqn9vm7no9usZjCOZthEzGWVztDqcXz40G9Qe9K7q1eiQiTkZ335ElGmP5hrIkZsACfDvn7WuwDzM7O-9pkfYQ==) Applications: To prevent liquidity fragmentation, Katana takes an "opinionated" approach by initially focusing on a single, core protocol for each DeFi vertical. [These include Morpho](https://vertexaisearch.cloud.google.com/grounding-api-redirect/AUZIYQFBBRxRtojANB3oro1jJZmp50UAMB9b2ze_j-8E1d6hiaOsi6P3qt8vWA8-CoUdF9NfHqn9vm7no9usZjCOZthEzGWVztDqcXz40G9Qe9K7q1eiQiTkZ335ElGmP5hrIkZsACfDvn7WuwDzM7O-9pkfYQ==) for lending, Sushi for spot trading, and Vertex for perpetuals. - KAT Tokenomics and ve-Model: The native token, KAT, has a total supply of 10 billion. It is not used for gas fees (which are paid in ETH), but for coordinating incentives. Users can lock their KAT tokens to receive vKAT, which grants them voting power to direct future KAT emissions to different liquidity pools and in return, earn a share of the fees generated by those pools. [- Pre-launch "Krates"](https://vertexaisearch.cloud.google.com/grounding-api-redirect/AUZIYQF1iXsV78OPvnzXoZ3-xc_QuVjn2CWVxMsVTC6xysuimkgd15G9hcJ5p9yH9Co9gHgHt70LPGkl9cpa_9W8yg9QEuxuL9xJoVJEcQhQ-fnZFC4Rx_cnxRJbHS7wihfb-o4hug==) Campaign: The over $240 million in pre-deposits was raised through a campaign where users deposited assets like ETH, USDC, USDT, and WBTC to earn "Krates". [These were virtual loot](https://vertexaisearch.cloud.google.com/grounding-api-redirect/AUZIYQF1iXsV78OPvnzXoZ3-xc_QuVjn2CWVxMsVTC6xysuimkgd15G9hcJ5p9yH9Co9gHgHt70LPGkl9cpa_9W8yg9QEuxuL9xJoVJEcQhQ-fnZFC4Rx_cnxRJbHS7wihfb-o4hug==) boxes containing KAT tokens, partner project tokens, and NFTs, which were distributed after the mainnet launch. [- Airdrop for Polygon](https://vertexaisearch.cloud.google.com/grounding-api-redirect/AUZIYQEsjzooaJsb1VHJXSnCbkiY2oyT5NL_1TScolo8Nk1Os1Bv7es3YBc00ugkwHQ7x9G7RBwjXvQu-YLNCqnKd88EwrGuvxgFcstUwmZpFC3sqWcf3Qh_Dq9p_74kxTnyEOqIvNPkkuKA5Ii1Np5XTattu-dd2yGPXzJsPyn-kiHe8olvw0Fbf7SPC0mnnz6enCqKDMKrVxJpXH4=) Stakers: As part of its launch, the Katana Foundation is airdropping approximately 15% of the total KAT supply (1.5 billion tokens) to users who stake Polygon's POL token on Ethereum. [- Technical Foundation](https://vertexaisearch.cloud.google.com/grounding-api-redirect/AUZIYQGYSkmJJfJLKKQkOhHdIh_LrBgfbXycftZYTXyjpCNWVQaiTVXtWKRDjjexQ8S7p9h7dpKxOy-fpcEmN5TnW2u_uRmDgndNcgD3KgWqXoFkldkpGdgvObN5YCMwHHX_KqI4xeX4WnSTGgP0C9-6uSfBPC4c_tuFxjg2JWDxM2OnjuSZew==):** Katana is built using a custom version of the OP Stack and Polygon's Chain Development Kit (CDK). It is connected to Polygon's AggLayer, which allows for shared liquidity and interoperability with other connected chains, and uses zero-knowledge (ZK) proofs for fast finality.
