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.

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Blockchains (L2)

Katana

# Katana Network Expenses Methodology

## 1. Overview

Expenses measures the total cost incurred by Katana Network to operate its business. This includes L1 settlement costs (data availability fees) for Katana Chain, KAT asset incentives distributed to liquidity providers via Merkl, and yield distributions from Katana Vault Bridge. These expenses represent both direct operational costs (L1 settlement) and indirect user incentives designed to bootstrap liquidity and network activity. All values are converted to USD using end-of-day price feeds.

## 2. Data sources

- **Blockchain events**: `Claimed` events from `Distributor` contracts, as well as transaction-level L1 gas fee data, covering Katana
- **External data**: End-of-day price feeds for native gas assets and rewarded assets, and asset metadata for decimal normalization

## 3. Step-by-step calculation

### Component A: Katana Chain L1 settlement costs

- **Purpose**: Calculate the L1 data availability and settlement costs incurred by Katana Chain
- **Logic**: Transaction-level data on Katana is parsed to extract L1 gas fees. For each transaction, the L1 fee is calculated using the L1 gas used, L1 gas price, and L1 fee scalar, or extracted directly from the L1 fee field when available. These fees are aggregated daily to represent the cost of revenue for Katana Chain.
- **Key fields**: `l1_fee`, `l1_gas_used`, `l1_gas_price`, `l1_fee_scalar`

### Component B: Katana Chain asset incentives

- **Purpose**: Capture KAT asset incentives distributed to liquidity providers
- **Logic**: `Claimed` events from the canonical Merkl `Distributor` contract are parsed. Claims for KAT and its wrapped variants (wKAT V1 and wKAT V2) are identified by their asset addresses and aggregated. To prevent double-counting, these claims are normalized to canonical KAT.
- **Key fields**: `amount`, `token_address`

### Component C: Katana Vault Bridge yield distribution

- **Purpose**: Capture yield distributions paid out to Katana Vault Bridge users
- **Logic**: `Claimed` events from the Merkl `Distributor` contract are filtered for specific Katana Vault Bridge asset addresses (including vbUSDC, vbETH, vbUSDT, vbWBTC, and vbUSDS). The claimed amounts of these underlying assets are aggregated daily.
- **Key fields**: `amount`, `token_address`

### Component D: USD conversion and aggregation

- **Purpose**: Normalize all expense components to USD and aggregate them
- **Logic**: Raw asset amounts from token incentives and vault bridge distributions are normalized by their respective decimal precisions using asset metadata. These normalized amounts, along with the L1 settlement fees, are multiplied by their respective end-of-day asset prices in USD. The three expense streams (L1 settlement costs, KAT asset incentives, and Katana Vault Bridge yield distributions) are then summed to calculate the total daily expenses for Katana Network.
- **Key fields**: `expenses`, `price_usd`

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

Total project operating and incentive expenses.

KatanaKAT

Expenses

Expenses

Competitive landscape

Chain breakdown