Polygon-backed, high-yield blockchain launches for institutional adoption

2 weeks ago

The Katana Foundation, a nonprofit focused connected decentralized concern (DeFi) development, is launching its backstage mainnet, aiming to unlock greater crypto plus productivity via deeper liquidity and higher yields for users.

The Katana Foundation launched a DeFi-optimized, private blockchain, Katana, connected May 28, incubated by GSR Markets and Polygon Labs, with the nationalist mainnet motorboat acceptable for June.

The caller blockchain volition alteration users to gain higher yields and research DeFi successful a “unique, optimized output environment” that unlocks latent worth done an ecosystem that makes each integer plus “work harder,” according to an announcement shared with Cointelegraph.

“DeFi users merit ecosystems that prioritize sustainable liquidity and accordant ‘real’ yields,” wrote Marc Boiron, the CEO of Polygon Labs and halfway contributor astatine Katana, adding:

“Katana’s user-centric exemplary turns inefficiencies into advantages, establishing a genuinely positive-sum situation for builders and participants alike."

Katana aims to lick the crypto industry’s liquidity fragmentation issue, which tin origin important terms slippage, arsenic 1 of the main barriers limiting organization DeFi participation

To trim the worth slippage successful DeFi, Katana’s blockchain concentrates the liquidity from galore protocols and collects yields connected each imaginable sources to make an ecosystem with deeper liquidity and much predictable lending and borrowing rates.

Institutional information successful DeFi is acceptable to triple implicit the adjacent 2 years to 75% from 24% of 350 surveyed organization investors, according to absorption consulting steadfast EY-Parthenon.

To tackle the increasing organization liquidity needs, Katana’s liquidity excavation is composed of aggregate protocols, including lending protocol Morpho, decentralized speech (DEX) Sushi and perpetual DEX Vertex, enabling users to commercialized “blue-chip assets” without needing crosschain transfers.

Katana has besides incorporated Conduit’s sequences and Chainlink’s decentralized oracle network.

Katana to compound DeFi output from “Ethereum-based opportunities”

Katana aims to boost sustainable output by gathering a cohesive DeFi ecosystem. For instance, VaultBridge deploys bridged assets into overcollateralized, curated lending strategies connected Ethereum via Mopho to gain yield, which is routed backmost and compounded connected Katana.

The protocol volition reinvest web fees and a information of exertion gross backmost into its ecosystem.

“This reduces reliance connected short-term incentives, generates accordant yield, and arsenic it grows, acts arsenic an progressively unchangeable backstop during periods of volatility and liquidity shocks,” Polygon Labs’ Boiron told Cointelegraph, adding:

“Yield is distributed pro-rata to each concatenation utilizing VaultBridge protocol based connected their stock of full deposits into VaultBridge.”

“So if Katana supplies 20% of the full vault deposits, it receives 20% of the output back,” helium added.

Katana volition subsequently allocate its stock of output to users done boosted DeFi incentives crossed “core apps” specified arsenic Sushi, Morpho oregon Vertex. The output is generated from “Ethereum-based opportunities and past enhanced done Katana’s halfway applications,” said Boiron.

Polygon Labs’ CEO antecedently criticized DeFi protocols for fueling a rhythm of “mercenary capital” by offering sky-high yearly percent yields (APYs) done token emissions.

Beyond infrastructure-related limitations, regulatory uncertainty remains different important obstruction to organization DeFi adoption.

Regulatory concerns were the main obstruction to entry, flagged by 57% of organization investors arsenic the main crushed for not readying to enactment successful DeFi activities.