Tiger Research: Katana utilizes bridged assets for dual yield generation

Asia-based Web3 research and consulting firm Tiger Research has highlighted Katana's key strength as its ability to actively generate and reinvest yield from assets entering its Layer 2 environment, rather than simply storing them. In a recent report, the firm noted that Katana employs a dual-yield structure combining both on-chain and off-chain revenue streams. According to the report, assets bridged to Katana are deployed to Ethereum mainnet lending protocols via its Vault Bridge. The resulting profits are then reinvested into Sushi liquidity pools and lending incentives. Simultaneously, Katana's native stablecoin, AUSD, is backed by U.S. Treasurys, with the off-chain interest income channeled back into the ecosystem as incentives for the AUSD pool. To manage risk, Katana collaborates with professional risk curators such as Gauntlet and Steakhouse Financial, and also operates an internal risk committee and other safeguards. The report added that as of the third quarter of last year, over 95% of Katana's Total Value Locked (TVL) was actively deployed in DeFi protocols.