Polygon Labs Shifts Focus: Embracing the “Degen” Culture with Katana
From Corporate Collaborations to Crypto Enthusiasts
Polygon Labs, once a star of the crypto surge in 2021 and 2022, gained fame through partnerships with big names like Starbucks and Meta. However, as these companies quietly stepped back from their blockchain ventures during the “Crypto Winter,” Polygon Labs turned its attention to new avenues to boost its network’s popularity.
Introducing Katana: A New Frontier for Risk-Takers
On Wednesday, Polygon Labs, alongside crypto market maker GSR, unveiled Katana, a blockchain designed for the adventurous traders known as “degens.” This term is crypto slang for those with a high risk tolerance who often engage with decentralized finance (DeFi) platforms.
Understanding DeFi: A New Banking Paradigm
DeFi platforms offer decentralized alternatives to traditional banking services like lending and borrowing. Instead of borrowing from institutions like JPMorgan Chase, DeFi users tap into decentralized pools of funds, contributed by fellow crypto traders.
A Strategic Shift in Focus for Polygon Labs
Founded in 2017, Polygon Labs was a standout in the previous crypto cycle. Yet, the company’s recent moves indicate a clear shift towards catering to crypto traders over corporate giants. Their collaborations with Meta and Starbucks, which revolved around NFTs and blockchain-based loyalty programs, were initially celebrated but eventually discontinued by these major companies in 2023 and 2024.
The Rise of the “Degen CEO”
In response, Polygon Labs has bolstered its DeFi team, with CEO Marc Boiron even adopting the moniker “the degen CEO” on social media platform X. Boiron emphasized the importance of focusing on actual blockchain activity rather than simply chasing big-name partnerships. “The key is: What are people actually doing on chain, rather than what looks good because it’s a big name?” he explained to Fortune.
Katana: Prioritizing Core DeFi Applications
Katana showcases this new direction by integrating key DeFi platforms like Morpho, Sushi, and Vertex. These applications enable users to engage in decentralized borrowing, lending, cryptocurrency swaps, and trading crypto futures.
A Unique Approach to DeFi Incentives
What sets Katana apart is its prioritization of core DeFi applications over competitors. On other blockchains, user funds might be split across various competing services, leading to volatile price changes. As an Ethereum layer-2 blockchain, Katana seeks to mitigate this by focusing incentives on a select few DeFi applications.
To achieve this, Katana will channel fees generated by users back to those using its favored DeFi applications, among other incentives.
Looking Ahead
Currently accessible to a select group of users, Katana is set to launch publicly in late June.
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