Katana VaultBridge & AUSD: How Real Yield Works
Katana VaultBridge is the mechanism that turns bridged assets into real yield by deploying them into yield-bearing strategies on Ethereum and returning them as vbTokens like vbETH and vbUSDC. Together with AUSD, a Treasury-backed stablecoin, it is how Katana Network funds sustainable returns instead of relying only on token emissions. Both run on Katana Network, an Ethereum Layer-2 (chain ID 747474).
Key takeaways
- VaultBridge routes bridged USDC, WETH, WBTC, and USDT into Ethereum yield strategies and issues vbTokens (vbETH, vbUSDC).
- That outside yield is reinvested into Katana as a base, sustainable return for users.
- AUSD is Katana’s native stablecoin, backed by offchain U.S. Treasuries — issued by Agora, custodied by State Street, managed by VanEck.
- VaultBridge has generated more than $3 million in revenue since launch.
- Chain-Owned Liquidity from sequencer fees deepens pools over time.
How VaultBridge works
When you bridge an asset into Katana, VaultBridge does not let it sit idle. Select assets — USDC, WETH, WBTC, and USDT — are deployed into curated yield-bearing strategies on Ethereum mainnet. In return you hold a vbToken, such as vbETH or vbUSDC, that represents your deposit plus the base yield it earns. That revenue is reinvested into Katana as a sustainable source of real yield, and VaultBridge has produced over $3 million in revenue since launch. For the bigger picture, see our Katana Network overview.
AUSD: Katana’s Treasury-backed stablecoin
AUSD is Katana’s native stablecoin and a second pillar of real yield. It is issued by Agora and backed by offchain U.S. Treasuries, with reserves custodied by State Street and managed by VanEck. By routing Treasury yield onchain, AUSD supports incentives across AUSD-denominated lending markets and liquidity pools, and it can be deposited into vaults such as yvAUSD for additional yield. This is what lets Katana DeFi offer returns grounded in real-world assets rather than purely speculative emissions. See how it fits the wider ecosystem in our Katana DeFi guide.
Chain-Owned Liquidity
Most chains let sequencer fees leak out as pure profit. Katana instead reinvests net sequencer fees into Chain-Owned Liquidity (CoL) — protocol-owned positions that deepen core pools. Over time this reduces reliance on mercenary liquidity and makes trading on the chain cheaper and more stable.
How the yield layers stack
| Source | What it provides |
|---|---|
| VaultBridge (vbTokens) | Base yield from Ethereum strategies on bridged assets |
| AUSD / yvAUSD | U.S. Treasury yield onchain via a Treasury-backed stablecoin |
| Chain-Owned Liquidity | Deeper, protocol-owned pools funded by sequencer fees |
| KAT incentives | Emissions directed by gauge voting |
Stakers can capture several of these at once. To turn this yield into a position, see our Katana staking guide, and compare with the chain’s broader DeFi vaults.
Risks
- Strategy risk — VaultBridge yield depends on the underlying Ethereum strategies performing as designed.
- Stablecoin risk — AUSD relies on Agora, its custodian, and Treasury markets; no stablecoin is risk-free.
- Smart-contract risk — bridges and vaults are contract-based and can be exploited.
Verify details against the official Katana documentation before depositing. This is not financial advice.
Frequently asked questions
What is Katana VaultBridge?
VaultBridge deploys bridged assets such as USDC, WETH, WBTC, and USDT into yield-bearing Ethereum strategies and returns them as vbTokens like vbETH and vbUSDC, reinvesting the yield into Katana for users.
What is AUSD on Katana?
AUSD is Katana’s native stablecoin, issued by Agora and backed by offchain U.S. Treasuries custodied by State Street and managed by VanEck. It brings Treasury yield onchain to support lending and liquidity.
What are vbTokens?
vbTokens, such as vbETH and vbUSDC, are receipts for assets deployed through VaultBridge. They represent your deposit plus the base yield it earns on Ethereum.
