Katana is a crypto project built to improve how DeFi liquidity is concentrated and used. Instead of spreading liquidity across many disconnected apps, Katana’s docs say the chain is designed so liquidity is funneled into core DeFi applications like Morpho for lending and Sushi for spot trading, with the goal of deeper liquidity and more sustainable yields.
The project is closely tied to the Ethereum-aligned modular scaling world. Polygon says Katana uses Agglayer as its canonical bridge and became the first Agglayer CDK chain to leverage CDK OP Stack, which places it inside the broader Ethereum and Polygon-connected infrastructure landscape rather than as a standalone legacy Layer 1.
The token is KAT, and it is used for staking, governance, and ecosystem incentives. Katana’s documentation says users can stake KAT to receive vKAT, which gives voting power to direct incentives toward specific DeFi pools, and the docs also describe additional staking wrappers like avKAT for vault-based positions.