8h ago
What is VaultBridge ⬇️
VaultBridge turns a “plain bridge” into a “yield bridge”: when users bridge ETH/USDC/USDT/WBTC, the L1 assets are automatically deposited into @MorphoLabs ERC‑4626 vaults on Ethereum, so capital becomes productive by default. Users receive a 1vs1 vbToken on @katana (vbETH, vbUSDC, etc.) that retains parity and can be used across DeFi apps, while network-level yield is generated from the underlying vault positions.
How it works under the hood ⬇️
Routing and custody bridged assets are held in the VaultBridge contracts and deposited into pre‑curated Morpho vaults (ERC4626) on Ethereum users mint a 1vs1 vbToken on @katana that represents their bridged balance.
Risk curation: strategy selection and risk parameters are curated by independent managers ( Gauntlet, Steakhouse Financial) to target low volatility, repeatable yield rather than max APY.
Yield stream: interest earned from Morpho lending strategies is periodically streamed back on chain to Katana via native VaultBridge contracts for distribution by governance ( to boost core DeFi pools, CoL, or ecosystem incentives).
UX and compatibility no bespoke integrations are required; it works with standard bridge flows, supports opt‑in/opt‑out for users, and doesnt replace canonical bridges on existing chains.
Why it matters for @katana ⬇️
Productive TVL by default: all net‑new bridge inflows become working capital without fragmenting liquidity across dozens of protocols.
Real yield, not emissions: network revenue scales with TVL and activity, reducing reliance on inflationary token incentives.
Better builder economics... chain owned liquidity and VaultBridge yield deepen core markets (@MorphoLabs , @SushiSwap , Perps), improving execution and lowering the cost of bootstrapping new apps.
Key nuances and boundaries ⬇️
vbTokens dont auto‑accrue APY to holders: parity is maintained at 1к1 end users get boosted returns when dApps route VaultBridge revenue into their pools or incentives.
Segregated accounting: assets under VaultBridge are isolated from non VaultBridge flows, easing risk management across AggLayer connected chains.
Governance driven distribution vault yield is an L2 level revenue stream how much reaches end users depends on on chain allocation decisions and app integrations.
Mini user flow ⬇️
Bridge 1 ETH to Katana receive 1 vbETH on Katana the L1 ETH is deposited into a Morpho vault.
Use vbETH in Katana DeFi (swaps, LP, margin) ➡️ liquidity stays local while network revenue accumulates from the L1 strategy.
dApps surface the revenue: incentives or fee rebates funded by VaultBridge streams enhance vb asset returns for active users.
@alpha_katana @kenseionkatana
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