The Katana Foundation has introduced a new private blockchain that enhances the decentralized finance (DeFi) user experience by providing greater liquidity and higher user yields. The Katana mainnet, the private version, is now live, with a public launch expected in June.
Katana, under the support of Polygon Labs and GSR Markets, combines several decentralized finance solutions to guide users in earning more with their digital assets and mitigating one of the most substantial challenges in capital markets: fragmented liquidity.
This is important because fragmented liquidity often leaves users vulnerable to price slippage , which can impact overall returns, particularly for institutional users.
By bringing together liquidity from multiple DeFi protocols, such as lending protocol Morpho, decentralized exchange Sushi, or perpetual DEX Vertex, Katana will provide users with access to trade blue-chip assets with greater liquidity and efficiency.
Katana is leveraging Chainlink oracles and Conduit's sequencing tools for accurate asset price maintenance. Katana has a tool known as VaultBridge, which converts the user's assets into Ethereum lending positions to generate interest that is transferred back and compounded on Katana's platform.
Another aspect of Katana's model is using a portion of network fees and some app revenues, rather than short-term rewards, to help reinforce the ecosystem. These elements work to build a sustainable and reliable investment strategy that protects users in down markets.
"Katana turns inefficiencies into advantages," Marc Boiron, CEO of Polygon Labs, stated. He is confident that Katana now provides both developers and users in the DeFi world with a more consistent and productive ecosystem.
Katana Foundation launches a private DeFi blockchain first appeared on TheStreet on May 28, 2025