Tea-Fi Captures 33% of Katana Users Amid DeFi Reward Revolution

- Tea-Fi now accounts for over one-third of users on the Katana Layer-2 network. - The platform shifts focus from traditional liquidity incentives to sustained user engagement. Tea-Fi, a decentralized finance (DeFi) platform focused on user rewards, has gained significant traction within the Katana Layer-2 ecosystem. On August 18, 2025, Cointelegraph reported that Tea-Fi users make up over 33% of Katana’s total user base. This growth signals a pivotal trend in DeFi incentives, shifting from liquidity-driven strategies to rewarding long-term, on-chain activity. The platform’s innovative model encourages sustained engagement through actions like token swaps and vault deposits. A key component is its protocol-owned treasury, “TeaPot,” which aggregates revenue from swaps, vault fees, and ecosystem partnerships. TeaPot uses these funds for TEA token buybacks, user rewards through the “TeaDrops” mechanism, and ecosystem development. This structure prioritizes ongoing network activity over short-term liquidity gains. Tea-Fi operates in close synergy with the Katana network, which provides liquidity through its Chain-Owned Liquidity (CoL) layer. While Katana focuses on infrastructure-level liquidity, Tea-Fi enhances application-level utility. One standout collaboration is the “TeaParty” rewards initiative, offering double-reward incentives for token swaps on Katana. The campaign will distribute 6 million TEA tokens, incentivizing network participation and aligning rewards with user engagement. Additionally, Tea-Fi is building tools like software development kits (SDKs) and application programming interfaces (APIs) to enhance composability across DeFi platforms. Features such as shared rewards and gasless transactions improve the user experience, fostering collaboration across the ecosystem. The growth of Tea-Fi underscores a broader shift in the DeFi sector, away from temporary liquidity incentives to models that reward consistent, meaningful user activity. This progress not only strengthens integration within the Katana ecosystem but also sets a precedent for greater engagement across decentralized applications.