> 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/vault-bridge.md).

# Vault Bridge

Vault Bridge is Katana’s productive-TVL bridge. When users move supported assets from Ethereum to Katana, the underlying L1 capital is deployed into curated Morpho vaults rather than left idle in a bridge contract. Users receive vbTokens on Katana (vbUSDC, vbUSDT, vbWBTC, and a yield-generating WETH), which are 1:1 redeemable and behave like standard ERC-20s across every Katana DeFi application.

Yield generated on the L1 is harvested and streamed back to Katana where it funds real-yield incentives for active users. The bridge reserve becomes a productive treasury, and Katana’s growth is paid for by yield from Ethereum’s lending markets.

### vbUSDC as Margin

Katana Perps uses vbUSDC as its primary margin asset. Every dollar of margin posted to the venue strengthens Katana’s productive TVL and contributes to the yield pool that funds ecosystem incentives such as trading competitions on Katana Perps itself.

The loop:

1. Traders deposit vbUSDC as margin.
2. The underlying USDC earns a yield on Ethereum.
3. Yield is routed back to Katana and deployed as trading and liquidity incentives.
4. Higher activity attracts more margin, deepening the yield pool.

Growth campaigns run on real, recurring revenue rather than inflationary emissions.

### Structural Alignment

Through Vault Bridge, Katana Perps connects directly to:

* Vault Bridge revenue - vbUSDC margin generates L1 yield that flows back to the chain.
* Chain-Owned Liquidity - trading volume produces sequencer fees and reinforces the depth of Katana’s core markets.
* The vKAT Armory - vKAT voters can direct incentives toward perps markets, gauges, and campaigns.
* KAT utility and value accrual - perps activity sits at the center of the system rather than beside it.