The network uses pessimistic proofs via the AgglayerGateway for settlement on Ethereum, with vault bridges for cross-chain asset transfers.

Katana Network provides a scalable execution environment connected to Ethereum through the Agglayer interoperability layer.

Katana Network is a Layer 2 blockchain built on the Agglayer ecosystem.

twitter

website

github

Blockchains (L2)

Katana

# Katana Earnings Methodology

## 1. Overview

Earnings measures the net value a project retains after subtracting all expenses from its revenue. This includes cost of revenue, token incentives, and operating expenses, where applicable. Note that earnings reflects onchain profitability, and may understate true costs in instances where the project does not report its operating expenses onchain. For Katana, revenue is generated across multiple products, including Katana Chain, Katana Perps, Katana Vault Bridge, Katana AUSD Yield, and vKAT. Expenses consist of L1 settlement fees (cost of revenue), KAT asset incentives distributed via Merkl, and Vault Bridge yield distributions. Earnings is calculated by subtracting total expenses from total revenue.

## 2. Data sources

- **Blockchain events**: `Claimed` events from `Distributor` contracts, `Exit` events from `DynamicExitQueue` contracts, `TradeExecuted` events from `Exchange` contracts, ERC-20 asset transfers, and transaction data on Katana Chain, as well as `YieldCollected` events from vault contracts (including `vbUSDC`, `vbUSDT`, `vbETH`, `vbWBTC`, and `vbUSDS`) on Ethereum
- **External data**: End-of-day price feeds for native and bridged assets

## 3. Step-by-step calculation

### Component A: Katana Chain revenue and cost of revenue

- **Purpose**: Calculate gas fees and L1 settlement costs for Katana Chain
- **Logic**: Gas fees are calculated from transaction data on Katana Chain by summing L2 execution fees, L1 settlement fees, and operator fees. L2 execution fees are calculated by multiplying gas used by gas price. L1 settlement fees are calculated using L1 fee scalar, L1 gas used, and L1 gas price. Operator fees are calculated using operator fee constants and scalars. L1 settlement fees are separately categorized as cost of revenue. All values are normalized by decimal precision and converted to USD using end-of-day price feeds.

### Component B: Katana Perps revenue

- **Purpose**: Calculate trading fees from Katana Perps
- **Logic**: `TradeExecuted` events from `Exchange` contracts (V1 and V2) are parsed to extract maker and taker fees. These fees are denominated in USD, aggregated daily, and classified as protocol revenue.

### Component C: Katana Vault Bridge yield and redistribution

- **Purpose**: Calculate yield revenue and redistribution expenses for Katana Vault Bridge
- **Logic**: `YieldCollected` events from vault contracts on Ethereum are parsed to extract harvested yield amounts for USDC, USDT, ETH, WBTC, and USDS. These yield amounts are normalized by decimal precision, converted to USD, and classified as revenue. Yield redistribution expenses are captured by tracking `Claimed` events from the Merkl `Distributor` contract for the corresponding vault bridge asset addresses on Katana Chain.

### Component D: Katana AUSD Yield revenue

- **Purpose**: Calculate yield share revenue from Katana AUSD Yield
- **Logic**: ERC-20 asset transfers of AUSD to the Katana-controlled Safe address are tracked. These inflows represent the protocol's share of Agora T-bill yield. The amounts are normalized by decimal precision, converted to USD, and classified as revenue.

### Component E: vKAT exit fee revenue

- **Purpose**: Calculate early-exit fees for vKAT
- **Logic**: `Exit` events from `DynamicExitQueue` contracts are parsed to extract early-exit fees paid in KAT when locks are withdrawn. These fees are normalized by decimal precision, converted to USD, and classified as revenue.

### Component F: Token incentives expense

- **Purpose**: Calculate KAT asset incentives distributed to liquidity providers
- **Logic**: `Claimed` events from the Merkl `Distributor` contract are parsed to track claims of KAT, wKAT V1, and wKAT V2. To prevent double-counting, these claims are aggregated and normalized to canonical KAT. The total claimed amount is converted to USD using end-of-day price feeds and classified as token incentives expense.

### Component G: Earnings aggregation

- **Purpose**: Combine all revenue and expense streams to calculate net earnings
- **Logic**: Total revenue is calculated as the sum of revenues from Katana Chain, Katana Perps, Katana Vault Bridge, Katana AUSD Yield, and vKAT. Total expenses are calculated as the sum of cost of revenue (L1 settlement fees), token incentives, and Vault Bridge yield distributions. Earnings are calculated daily by subtracting total expenses from total revenue.

*This methodology was automatically generated by Token Terminal's methodology analyzer.*

Net profit (also profits, net income, profitability) — revenue remaining after subtracting expenses.

KatanaKAT

Earnings

Earnings

Competitive landscape