Wait, so Katana is launching because a proposal to use assets idly sitting on the Polygon bridge failed due to backlash? Instead, Polygon is incubating Katana as an L2 on Polygon (making Katana an L3?). The proposal to use bridge funds caused Aave to abandon Polygon altogether as it would: 1) deposit assets to a competitor Morpho 2) pose significant risks to bridgoooors Katana is a compromise or a second-best option. But it makes sense as Polygon's bridge funds won't be touched. And $POL stakers will get 15% of the KAT airdrop. Neat. Interestingly, Katana is an Opinionated DeFi chain and will decide on where the funds will flow to optimize for yield and liquidity. It's the opposite of all other L1s/L2s that seek neutrality. Three pre-selected protocols are: - Morpho - Sushi - Vertex This dynamic allows KAT/vKAT tokens to be used for bribery: not just for voting on KAT emissions to boost liquidity but also for protocols seeking preferential treatment. It requires one key thing: liquidity. As TVL grows, Katana becomes more attractive for new protocols to receive preferential treatment. Pre-deposits closed with $170M in TVL. Not bad, especially since it will initially focus on just three protocols, and the GSR market maker will deposit liquidity where needed. ----- I see Katana in light of the new emerging trend in DeFi: "Vaultization" As DeFi gets more complex and the number of protocols increases, users are having a hard time managing their own assets. Instead, multiple vault protocols (Upshift, Veda...) are emerging as active managers to do the hard work for you. It changes the game. Vault protocols become user-facing platforms with the discretion to decide where to deposit assets. As a result, DeFi protocols no longer chase users directly but instead partner with vault managers to attract TVL. Katana goes one step further by having a new chain with a token to control emissions.