Polygon Labs collaborates with GSR to launch the DeFi chain Katana, with pre-deposits exceeding 200 million USD.

Gate News bot message, Polygon Labs and cryptocurrency trading company GSR launched a new blockchain called Katana based on Ethereum on Monday, focusing on Decentralized Finance.

The blockchain aims to address the two most pressing issues in the industry: unsustainable yields caused by token inflation, and the phenomenon of digital asset islands among dozens of blockchains and hundreds of applications.

Despite the global valuation of crypto assets reaching trillions of dollars, tokens are dispersed across numerous platforms, resulting in relatively low market efficiency.

"The way each chain is built goes against the original intention of deep liquidity," said Marc Boiron, CEO of Polygon Labs, in a recent interview with DL News.

"In fact, there are 30 decentralized exchanges on one chain," he added.

But his solution also has a problem: unlike most general-purpose Blockchain ecosystems that are highly competitive, Katana will prioritize specific financial applications and will also provide various incentives for users who deposit Crypto Assets in these applications.

This move will restart an initiative that caused a huge stir among users on the Polygon POS Blockchain last year.

In December last year, three institutions proposed to deposit approximately $1.3 billion worth of idle stablecoins into the Morpho lending protocol, which are currently sitting idle on the bridge connecting Polygon and Ethereum. Although this proposal was expected to generate about $70 million in interest annually, it faced criticism and was quickly retracted, despite being a conservative estimate, as it was deemed gambling with user funds.

Boiron stated that the proposal was misunderstood, and in a brand new Blockchain, it would encounter almost no resistance.

According to the press release from the Katana project, it attracted over $200 million in deposits before its debut on Monday.