Polygon Labs and GSR have launched Katana, a DeFi-focused Layer 2 blockchain, with its mainnet going live on June 30, 2025. The launch was backed by over $240 million in pre-deposited assets, which began earning yield immediately through integrations with protocols such as Yearn Finance and Morpho Labs. Katana is built on Polygon's Agglayer stack and the OP Stack, designed to align applications, users, and chain revenue with a focus on decentralized finance. The platform has allocated 1 billion KAT tokens for rewards, with 120 million tokens already distributed to early users and pre-deposit holders. Katana supports deep liquidity and high yields, offering native vault bridges and liquidity super apps like Charm Finance, which reported over $2.4 million in total value locked (TVL) in its vaults on Katana. The chain integrates with prominent DeFi protocols including SushiSwap, Morpho, Yearn, and utilizes Chainlink's data feeds, data streams, and Cross-Chain Interoperability Protocol (CCIP) from day one. Within seven days of launch, Katana reached a TVL of $430 million, with Morpho contributing $150 million on its first day, making it the largest DeFi protocol on any Layer 2 by deposits. The platform is continuing to expand its ecosystem with new vaults, native bridges to Ethereum, and partnerships with projects like Teller and YieldFi, which offers up to 14% APY on stablecoins. Katana's approach emphasizes protocol-owned liquidity, fee recycling, and sustainable yield generation, positioning it as a notable development in the Layer 2 DeFi landscape.