Overview
Katana is an Ethereum Layer 2 built specifically for DeFi, designed to make capital more productive by concentrating liquidity and returning more of the value generated by the network back to users. Instead of spreading liquidity across competing protocols, Katana is built around a small set of core DeFi markets for trading, lending, and borrowing. Applications can then build on top of this shared liquidity, giving users access to deeper markets and allowing capital to be used more efficiently across the ecosystem.
Katana also brings additional sources of revenue onchain, including sequencer fees, Vault Bridge yield, and stablecoin revenue. This revenue can be directed back into DeFi applications as incentives, helping increase yields without relying entirely on inflationary token emissions. For users, the goal is simple: deeper liquidity, more productive assets, and better sustainable yield.
Katana uses Agglayer for interoperability and ZK proofs to secure state transitions, making it easier for users and assets to move between Katana and the broader Ethereum ecosystem.