Why Katana's Liquidity Model Stands Out in DeFi

Here's the thing about most DeFi platforms: they pump emissions into the pool, call it "growth," and move on. It works until it doesn't.

Katana takes a different route. Rather than just renting liquidity with token incentives, it's engineered multiple feedback loops that matter—fees, yields, and governance rewards all feed back into liquidity provision. That's harder to pull off than it sounds. The mechanics here aren't about chasing higher TVL numbers for the sake of it. They're about building something sustainable where each lever reinforces the others. When fees generate revenue, when yield compounds back into the system, when governance participation directly impacts capital efficiency—that's when you get real compounding, not just borrowed growth.