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

The Katana Foundation, a nonprofit focused on decentralized finance (DeFi) development, is launching its private mainnet, aiming to unlock greater crypto asset productivity via deeper liquidity and higher yields for users.

The Katana Foundation launched a DeFi-optimized, private blockchain, Katana, on May 28, incubated by GSR Markets and Polygon Labs, with the public mainnet launch set for June.

The new blockchain will enable users to earn higher yields and explore DeFi in a “unique, optimized yield environment” that unlocks latent value through an ecosystem that makes every digital asset “work harder,” according to an announcement shared with Cointelegraph.

“DeFi users deserve ecosystems that prioritize sustainable liquidity and consistent ‘real’ yields,” wrote Marc Boiron, the CEO of Polygon Labs and core contributor at Katana, adding: 

“Katana’s user-centric model turns inefficiencies into advantages, establishing a truly positive-sum environment for builders and participants alike.”

Polygon-backed, high-yield blockchain launches for institutional adoption
Source: Katana

Katana aims to solve the crypto industry’s liquidity fragmentation issue, which can cause significant price slippage, as one of the main barriers limiting institutional DeFi participation

Related: Here’s how abstraction minimizes fragmentation in DeFi, making it more fluid

To reduce the value slippage in DeFi, Katana’s blockchain concentrates the liquidity from numerous protocols and collects yields on all potential sources to create an ecosystem with deeper liquidity and more predictable lending and borrowing rates.

Polygon-backed, high-yield blockchain launches for institutional adoption
2025 Institutional Investor
Digital Assets Survey. Source: EY-Parthenon

Institutional participation in DeFi is set to triple over the next two years to 75% from 24% of 350 surveyed institutional investors, according to management consulting firm EY-Parthenon.

To tackle the growing institutional liquidity needs, Katana’s liquidity pool is composed of multiple protocols, including lending protocol Morpho, decentralized exchange (DEX) Sushi and perpetual DEX Vertex, enabling users to trade “blue-chip assets” without needing crosschain transfers.

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

Related: Polygon CEO: DeFi must ditch hype for sustainable liquidity

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

Katana aims to boost sustainable yield by building a cohesive DeFi ecosystem. For instance, VaultBridge deploys bridged assets into overcollateralized, curated lending strategies on Ethereum via Mopho to earn yield, which is routed back and compounded on Katana.

The protocol will reinvest network fees and a portion of application revenue back into its ecosystem.

“This reduces reliance on short-term incentives, generates consistent yield, and as it grows, acts as an increasingly stable backstop during periods of volatility and liquidity shocks,” Polygon Labs’ Boiron told Cointelegraph, adding:

“Yield is distributed pro-rata to each chain using VaultBridge protocol based on their share of total deposits into VaultBridge.”

“So if Katana supplies 20% of the total vault deposits, it receives 20% of the yield back,” he added.

Katana will subsequently allocate its share of yield to users through boosted DeFi incentives across “core apps” such as Sushi, Morpho or Vertex. The yield is generated from “Ethereum-based opportunities and then enhanced through Katana’s core applications,” said Boiron.

Polygon Labs’ CEO previously criticized DeFi protocols for fueling a cycle of “mercenary capital” by offering sky-high annual percentage yields (APYs) through token emissions. 

Beyond infrastructure-related limitations, regulatory uncertainty remains another significant barrier to institutional DeFi adoption.

Polygon-backed, high-yield blockchain launches for institutional adoption
2025 Institutional Investor
Digital Assets Survey. Source: EY-Parthenon

Regulatory concerns were the main barrier to entry, flagged by 57% of institutional investors as the main reason for not planning to participate in DeFi activities.

Magazine: DeFi will rise again after memecoins die down: Sasha Ivanov, X Hall of Flame

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Starmer ran the gauntlet with Trump but just about emerged intact

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Starmer ran the gauntlet with Trump but just about emerged intact

When TV cameras are let in to film world leaders meeting in person, the resulting footage is usually incredibly boring for journalists and incredibly safe for politicians.

Not with Donald Trump.

Sir Keir Starmer ran the gauntlet on Monday.

Trump latest: President treats PM to a ride on Air Force One

Put through a total of almost 90 minutes of televised questioning alongside the American leader, it was his diciest encounter with the president yet.

But he still just about emerged intact.

For a start, he can claim substantive policy wins after Trump announced extra pressure on Vladimir Putin to negotiate a ceasefire and dialled up the concern over the devastating scenes coming from Gaza.

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There were awkward moments aplenty though.

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Trump calls London mayor a ‘nasty person’

Top of the list is Mr Trump’s trashing of the prime minister’s Labour colleague, London mayor Sir Sadiq Khan.

But more important than that, Monday’s meeting was the clearest representation of the political gulf that separates the two leaders.

“He’s slightly more liberal than me,” Mr Trump said of Sir Keir when he arrived in Scotland.

What an understatement.

Read more:
Trump reignites row with Sir Sadiq Khan

EU leaders resigned to US trade deal

U.S. President Donald Trump meets with British Prime Minister Keir Starmer at Trump Turnberry golf club on July 28, 2025 in Turnberry, Scotland, Britain. Christopher Furlong/Pool via REUTERS
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The two leaders held talks in front of the media. Pic: Reuters

On green energy, immigration, taxation and online regulation, the differences were clear to see.

Sir Keir just about managed to paper over the cracks by chuckling at times, choosing his interventions carefully and always attempting to sound eminently reasonable.

At times, it had the energy of a man being forced to grin and bear inappropriate comments from his in-laws at an important family dinner.

But hey, it stopped a full Trump implosion – so I suppose that’s a win.

My main takeaway from this Scotland visit though is not so much the political gulf present between the two men, but the gulf in power.

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Trump gives Putin new deadline to end war

Sir Keir flew the length of the country he leads to be the guest at the visiting president’s resort.

He was then forced to sit through more than an hour of uncontrolled, freewheeling questioning from a man most of his party and voters despise, during which he was offered unsolicited advice on how to beat Nigel Farage and criticised (albeit indirectly) on key planks of his government’s policy platform.

In return he got warm words about him (and his wife) and relatively incremental announcements on two foreign policy priorities.

So why does he do it?

Because, to borrow a quote from a popular American political TV series: “Air Force One is a big plane and it makes a hell of a noise when it lands on your head.”

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Big brands are sleepwalking when it comes to stablecoins

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Big brands are sleepwalking when it comes to stablecoins

Big brands are sleepwalking when it comes to stablecoins

With Amazon and Walmart exploring stablecoins, institutions may be underestimating potential exposure of customer data on blockchains, posing risks to privacy and brand trust.

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ECB adviser doubts digital euro can match US dollar stablecoins

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ECB adviser doubts digital euro can match US dollar stablecoins

ECB adviser doubts digital euro can match US dollar stablecoins

The European Central Bank may rely on regulated euro stablecoins and private innovation to counter the dominance of US dollar stablecoins, says adviser Jürgen Schaaf.

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