> For the complete documentation index, see [llms.txt](https://docs-perps.katana.network/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs-perps.katana.network/katana-blockchain.md).

# Katana Blockchain

Katana is a DeFi-focused Layer 2 blockchain built to concentrate liquidity, generate real yield, and route value back to users. Incubated by Polygon Labs and GSR and deployed with support from Conduit, Katana launched on mainnet in July 2025 as the first chain built on the Agglayer CDK OP Stack.

Unlike general-purpose rollups, Katana is purpose-built for DeFi. Its architecture is designed around a single thesis: every layer of infrastructure — from bridging to sequencing to governance — should function as a yield engine. Bridged assets earn yield before they even reach the chain. Sequencer fees fund ecosystem liquidity. And emissions are governed by vote-locked token holders who direct rewards to the most productive applications.

## Architecture

Katana uses the Agglayer CDK in a configuration known as **CDK-opgeth-zkrollup**. This combines three key components into a single, unified stack:

**OP Stack base layer.** Katana's execution environment is built on a modified version of the OP Stack, using Ethereum's Geth client as the execution engine. This gives developers a familiar EVM-compatible environment with all the tooling, libraries, and infrastructure that the OP Stack ecosystem provides. Conduit's G2 sequencer handles transaction ordering and batching, delivering high throughput and low-latency block production.

**ZK validity proofs via OP-Succinct.** Rather than relying on a seven-day fraud proof window like traditional optimistic rollups, Katana uses zero-knowledge proofs generated by Succinct Labs' SP1 prover. Every state update submitted to Ethereum is accompanied by a ZK proof that mathematically guarantees the new state was derived by correctly applying valid user transactions to the previous state. These proofs are verified on Ethereum by the SP1Verifier smart contract. The result is fast finality — approximately one hour — without sacrificing security. STARK proofs are first generated for each block range, then wrapped into SNARK proofs for on-chain verification efficiency.

**Agglayer shared bridge and interoperability.** Katana connects to the Agglayer, Polygon's network of interoperable chains. The Agglayer uses a shared bridge escrow contract on Ethereum that holds assets for all participating chains. Each chain must provide ZK proofs to access assets in the shared bridge — Agglayer calls these "pessimistic proofs." In Katana's case, both the OP-Succinct execution proofs and the Agglayer bridge accounting proofs are nested into a single proof verified by the Succinct SP1Verifier. This means Katana gets both state validation and cross-chain bridge security in one verification step.

### How the Proof System Works

Katana's proof architecture is a nested, two-layer system:

{% stepper %}
{% step %}

### Aggchain proof (inner layer)

The OP-Succinct range proofs verify that a batch of L2 state transitions was executed correctly. These are aggregated into a single proof covering the entire block range.
{% endstep %}

{% step %}

### Pessimistic proof (outer layer)

The Agglayer bridge accounting proof wraps around the aggchain proof, verifying that the shared bridge's asset accounting remains correct across all participating chains. This ensures no single chain can withdraw more assets than it deposited.
{% endstep %}
{% endstepper %}

Both layers are verified together in a single on-chain transaction using the SP1Verifier contract on Ethereum. Transaction data is published to Ethereum as blobs (EIP-4844), ensuring full data availability.

### Network Details

| Property                | Value                                     |
| ----------------------- | ----------------------------------------- |
| Chain ID                | 747474                                    |
| Gas Token               | ETH                                       |
| RPC                     | <https://rpc.katana.network/>             |
| Block Explorer          | [katanascan.com](https://katanascan.com/) |
| Testnet (Tatara)        | Chain ID 129399                           |
| L2BEAT Classification   | Stage 0 ZK Rollup                         |
| Data Availability       | On-chain (Ethereum blobs/calldata)        |
| Prover                  | SP1 by Succinct Labs                      |
| Sequencer               | Conduit G2                                |
| Infrastructure Provider | Conduit                                   |

For a full list of RPC endpoints and MetaMask configuration instructions, see [Katana Network Details](broken://pages/bfae2762448f11d5f99f6d33e8403f350afb869b).

## VaultBridge

VaultBridge is Katana's yield-generating bridge, and one of the most distinctive features of the chain's economic design. It is a separate protocol built by Polygon Labs' Agglayer team that Katana integrates with, though any Agglayer chain can use it.

### How Standard Bridges Work

On most Layer 2 chains, when a user bridges assets from Ethereum, those assets sit idle in a smart contract on L1. The bridge holds a 1:1 reserve — the user receives a wrapped token on L2, and their original asset does nothing until they withdraw. Billions of dollars in bridged TVL across the L2 ecosystem generates zero yield.

### How VaultBridge Works

VaultBridge changes this by making bridged assets productive. When users deposit supported assets (ETH, WETH, USDC, USDT, WBTC) into VaultBridge on Ethereum, the following happens:

{% stepper %}
{% step %}

### Deposit and vbToken issuance

The user deposits into VaultBridge on Ethereum and receives a corresponding vbToken (e.g., vbUSDC, vbETH, vbWBTC) on Katana via the Agglayer bridge. Each vbToken is a standard ERC-20 on Katana.
{% endstep %}

{% step %}

### L1 yield generation

The deposited assets are deployed into low-risk yield strategies in Morpho vaults on Ethereum. These strategies are curated by professional risk managers including Gauntlet and Steakhouse Financial. The yield generated by these strategies is real revenue from the underlying assets — not token emissions.
{% endstep %}

{% step %}

### Yield routing to Katana

The yield generated on Ethereum is streamed back to Katana, where it is routed to boost rewards in core DeFi apps on the chain — primarily Morpho (lending) and Sushi (spot trading). This creates a baseline yield layer that exists independently of KAT token emissions.
{% endstep %}

{% step %}

### Active use required

Critically, vbTokens sitting in a wallet do not earn VaultBridge yield. Users must deploy their vbTokens into lending markets, DEX liquidity pools, or other DeFi protocols on Katana to benefit from the boosted yield. This design ensures that only productive capital is rewarded, aligning user incentives with ecosystem health.
{% endstep %}
{% endstepper %}

### Supported vbTokens

| vbToken | Underlying Asset | L1 Vault Strategy       |
| ------- | ---------------- | ----------------------- |
| vbETH   | ETH / WETH       | Morpho vault (Ethereum) |
| vbUSDC  | USDC             | Morpho vault (Ethereum) |
| vbUSDT  | USDT             | Morpho vault (Ethereum) |
| vbWBTC  | WBTC             | Morpho vault (Ethereum) |
| vbUSDS  | USDS             | Morpho vault (Ethereum) |

Each VaultBridge token contract is managed by a dedicated multisig. The yield generated from the underlying assets does not accrue directly to vbToken holders — instead it is sent to a yield recipient address that distributes it across Katana's core DeFi protocols.

### Why It Matters for Traders

For Katana Perps users, VaultBridge means that the liquidity backing trading activity on the chain is inherently productive. Deeper liquidity pools translate to tighter spreads, lower slippage, and more competitive execution. The yield flowing from VaultBridge also supplements the rewards available to liquidity providers, attracting more capital and creating a positive feedback loop.

## Chain-Owned Liquidity (CoL)

Katana directs 100% of net sequencer fees back into the DeFi ecosystem rather than to a project treasury or chain operators. After paying for L1 data posting and infrastructure costs, all remaining sequencer revenue is deployed as Chain-Owned Liquidity.

CoL serves as a permanent liquidity reserve controlled by the network. It is deposited into core DeFi protocols on Katana — seeding lending pools, providing DEX liquidity, and acting as a shock absorber during periods of market volatility. Unlike user-deposited liquidity that may be withdrawn during downturns, CoL remains in place regardless of market conditions, providing a stable liquidity floor.

The CoL flywheel works as follows: more users transacting on Katana generates more sequencer fees, which builds deeper CoL reserves, which reduces slippage and improves rates, which attracts more users and trading volume. Over time, a portion of core app revenue also feeds into CoL, further deepening the network's liquidity base.

## AUSD

Katana integrates AUSD, a stablecoin issued by Agora. AUSD is backed by off-chain reserves held in US Treasuries and repo markets, custodied by State Street and managed by VanEck. The yield generated by these reserves is routed back to Katana, where it supports liquidity incentives across AUSD-denominated lending markets and DEX pools.

AUSD provides diversified off-chain yield that complements VaultBridge's on-chain strategies. Together, they create multiple independent revenue streams that do not rely on token emissions or speculative activity.

## The Katana Yield Stack

What makes Katana's economic model distinctive is the layering of multiple yield sources into a single, coordinated system. For users who actively participate in DeFi on Katana, the yield they earn comes from several independent streams:

* **VaultBridge yield** — Real revenue from lending strategies on Ethereum, streamed to Katana's core DeFi apps.
* **Sequencer fee revenue** — 100% of net sequencer fees recycled into Chain-Owned Liquidity and core app pools.
* **AUSD treasury yield** — Off-chain returns from US Treasuries and repo markets, distributed as boosted rewards on AUSD pools.
* **Native protocol yield** — Standard DeFi returns from lending interest, trading fees, and LP rewards on Morpho, Sushi, and other core apps.
* **KAT emissions** — Token incentives governed by vKAT holders, directed to the most productive pools and applications each epoch.

This layered approach means that Katana's yield model is not dependent on any single source. Even as KAT emissions naturally decline over the 18-month schedule, the underlying revenue from VaultBridge, sequencer fees, and AUSD treasury yield continues to grow with network usage.

## Core DeFi Applications

Katana takes an opinionated approach to its DeFi ecosystem, concentrating liquidity into a small number of core applications rather than fragmenting it across dozens of competing protocols:

* **Sushi** — The designated spot trading AMM. All swap liquidity on Katana is concentrated through Sushi v3, providing deeper order books and tighter spreads than would be possible if liquidity were split across multiple DEXes.
* **Morpho** — The unified lending and borrowing protocol. Morpho handles both upstream yield generation (VaultBridge vaults on Ethereum) and native lending markets on Katana.
* **Katana Perps** — The perpetual futures exchange providing leveraged trading with deep liquidity, low fees, and fast execution.

Additional protocols build on top of these core primitives — yield aggregators, structured products, and vault strategies — but the base liquidity layer remains concentrated.

## Agglayer Interoperability

As an Agglayer-connected chain, Katana benefits from seamless cross-chain bridging with all other chains in the Agglayer network. The shared bridge uses a global exit root — a merkle tree that aggregates the state roots of every participating chain into a single global state. This allows assets and messages to move between Agglayer chains without requiring separate bridge deployments for each pair.

For the broader Agglayer ecosystem, Katana serves as the primary liquidity hub. Other Agglayer chains can tap into Katana's deep liquidity pools from the day they deploy, bootstrapping their own DeFi activity without needing to attract independent liquidity from scratch.

## Security and Governance

Katana's smart contracts on Ethereum are managed through a tiered governance structure:

* **Shared Agglayer contracts** (AgglayerBridge, AgglayerManager, AgglayerGateway) are governed by the PolygonAdminMultisig (5/9 threshold) with a three-day timelock for upgrades. The PolygonSecurityCouncil (6/8 threshold) can activate an emergency state that pauses all connected chains and enables instant upgrades.
* **Katana-specific contracts** (AggchainFEP, SystemConfig, OptimismPortal) are managed by the Polygon Multisig 2 (3/5 threshold).
* **VaultBridge token contracts** each have their own dedicated multisig, with participants from the Katana Foundation, Polygon Labs engineering, and strategy partners like Steakhouse Financial and Yearn.

Katana is currently classified as a **Stage 0** rollup by L2BEAT. The project is targeting Stage 1 compliance, which would allow users to exit the chain without relying on centralized operators. Forced inclusion mechanisms are planned but not yet live at launch.

## Further Reading

* [KAT Token](broken://pages/034708c020452bcc84be2fde29519e01dcbabe4a) — Token overview, distribution, and what KAT means for traders
* [vKAT](broken://pages/2697a7b15ca8e91b63c7c4fdc7510bd46d8c0cb4) — Staking mechanics, voting, yield strategies, and the avKAT autocompounder
* [Katana Network Details](broken://pages/bfae2762448f11d5f99f6d33e8403f350afb869b) — RPC endpoints, chain configuration, and MetaMask setup
* [L2BEAT Katana Profile](https://l2beat.com/scaling/projects/katana) — Independent risk assessment and contract analysis
* [Agglayer Developer Docs](https://docs.agglayer.dev/) — Technical documentation for the CDK OP Stack