Thread by @ChainDebrief

Introducing @Katana_HQ : A Yield Generation Protocol And Winner Of Solana’s Hackathon

#Solana

1/12 The Solana Ignition Hackathon is a competition where projects compete to win cash prizes and seed funding.

@Katana_HQ emerged as the grand champion, beating 568 other promising projects to win the grand prize of US$75,000 and 2 tickets worth US$2,000 to Solana conference.

2/12 Katana is a yield generation protocol running on the Solana blockchain. It is building a comprehensive suite of packaged products that generate sustainable yield.

Its aim is to make yield generation simple for its users by automating all the complex strategies.

3/12 Yield farms derive value from the emission of the native token. Traditionally, the yield is unstainable in the long run because it is highly dependent on the price of the token. Once the price of the token start falling, the yield would get eroded in the process.

4/12 There is also the risk of impermanent loss. It’s a common oversight by DeFi players as they are lured in by the insane APY provided by the farm.

At the end of the day, users might be exposed to so much impermanent loss that they are better off not participating in the farm.

5/12 Katana offers about 11 different covered call option vaults and 3 put selling option vaults. It covers a range of assets from the OG, Bitcoin to the most hyped layer 1, Luna.

The covered call option vault is the hottest product of Katana.

6/12 It involves selling the call option of an asset in exchange for the option premium. The yield is sustainable in nature as it is derived from the option premium and is not dependent on token emissions.

https://twitter.com/Katana_HQ/status/1478920689813970946?s=20&t=plhyD_0bFuJuQSrhL_jkpw

7/12 The vault produces high organic yield independent on token distribution to achieve high APYs.

This yield generation model more sustainable in the long run which allows yield farmers to farm in peace and not have to constantly worry about the problem of diminishing returns.

8/12 While there are many benefits of using the covered call strategy, the caveat is that the user will lose out on the “upside” potential of the asset.

The beauty of Katana compared to the other option vault protocol is that no fees are charged for using its vault.

9/12 The team

@ayushmenon_ is the brains behind the project. A seasoned @solana developer and two-time Solana hackathon winner. He previously won the @RaydiumProtocol prize for his hackathon project Laguna Finance. He was also a former software engineer at @Delphi_Digital.

10/12

@eric_nie_ is the founding engineer of Katana. He is an experienced DeFi developer who has the capability and experience to turn an idea into a working DeFi product. Previously he worked as a software engineer in one of the best high-frequency trading firms, Jump Trading.

11/12 Some exciting stuff the team is working on:

- Exotic products that uses different strategies for user with different risk profiles
- Custom stratgies for treasuries & DAO
- To be fully decentralise and allow the commuinity to shape the future of the project

12/12 With a solid team behind the project that is able to build revolutionary products, it wouldn’t take long for it to gain the traction it needs to be the number one DeFi yield generation protocol.

Read the full article at chaindebrief.com/katana-yield-g…