Stablecoin Yield on Katana: How Vault Bridge Works¶
Vault Bridge makes bridged assets productive before they even enter Katana. When users bridge supported assets into Katana, the underlying assets can be allocated to yield-generating DeFi strategies selected and managed by trusted curators. Users receive corresponding assets on Katana, while the yield generated by the underlying deposits can be directed back into the Katana ecosystem. This allows bridged capital to contribute to Katana’s economic activity instead of remaining idle.
How Vault Bridge Works¶
When a supported asset is deposited through Vault Bridge, the underlying asset is allocated to yield-generating DeFi strategies selected and managed by trusted curators. A corresponding token is then made available on Katana for users to deploy across DeFi applications. These bridged assets are referred to as vbTokens, and examples include:
- vbUSDC
- vbUSDS
- vbUSDT
- vbWBTC
The underlying assets continue generating yield through curator-managed strategies while the corresponding vbTokens remain usable across Katana. The yield generated through Vault Bridge can then be directed back into the Katana ecosystem, helping support liquidity, incentives, and other DeFi activity across the network.
Why Vault Bridge Matters¶
Traditional bridges generally move assets from one chain to another without making the underlying capital productive. Vault Bridge changes that model. Instead of bridged assets sitting idle, the underlying capital can continue earning yield through curator-managed strategies while users put the bridged assets to work across Katana. This gives Katana an additional source of ecosystem revenue and helps make capital across the network more productive.
WETH on Katana¶
WETH on Katana is designed as a yield-generating version of wrapped ETH while remaining compatible with the standard WETH9 interface. This allows applications to integrate it in the same way they would typically integrate WETH, while the underlying asset can remain productive through the Vault Bridge system. WETH therefore serves as Katana’s native wrapped ETH implementation while also participating in Katana’s broader yield-generating infrastructure.
What Is Productive TVL?¶
Vault Bridge reflects a core idea behind Katana: capital should be productive wherever possible. Assets bridged into Katana are not just moved from one network to another. The underlying capital can continue generating yield while the corresponding assets remain available for trading, lending, borrowing, and other DeFi activity on Katana.
This creates two layers of productivity from the same capital: users can deploy their assets across DeFi on Katana, while the underlying assets can generate additional yield through Vault Bridge. That additional yield becomes another source of value that can flow back into the Katana ecosystem, helping deepen liquidity, strengthen incentives, and make DeFi on Katana more sustainable over time.