Polygon Labs' Katana Network Tackles DeFi Challenges

Katana is a decentralized finance (DeFi) network built on the Ethereum blockchain. It aims to address key challenges in the DeFi space, including fragmented liquidity and reliance on inflation-based incentives.

The network was developed by Polygon Labs in collaboration with GSR. It operates with a defined structure that limits activity to selected DeFi applications, concentrating liquidity within a smaller ecosystem.

Katana's native token is KAT, which has a total supply of 10 billion tokens and a circulating supply of 2.34 billion tokens at the time of writing. The token is primarily used for staking and managing incentive distribution across the network.