Products

ayKAT

ayKAT is AlphaYields' KAT looping strategy — a leveraged yield product that amplifies the native staking yield of avKAT through a structured recursive lending position on Morpho (Katana). It brings a productized, liquid version of Katana's highest-yielding onchain strategy to a single token.

Key terms

Deposit assetKAT

StrategyLeveraged avKAT looping on Morpho (Katana)

Leverage target~3.5x

LTV targetConservative vs 77% market max

FeesNo withdrawal fee today

ChainKatana

Execution layerMORE Vaults

Strategy overview

The strategy capitalises on the yield differential between avKAT (a yield-bearing liquid staking token) and KAT. avKAT is the liquid entry into KAT's voting escrow and its NAV continuously accrues staking rewards, while KAT does not — so a leveraged position in avKAT collateralised against KAT borrowing generates amplified net yield.

01Deposited KAT is staked to avKAT (liquid ERC-4626)
02avKAT is supplied as collateral on Morpho
03KAT is borrowed against that collateral
04Borrowed KAT is staked back to avKAT and re-supplied
05Steps 3–4 repeat until the target leverage ratio is reached

Net APY formula

(avKAT accrual + lending APY) × leverage − borrow APY × (leverage − 1)

This is correlated looping — materially safer than leverage on uncorrelated assets, because the collateral (avKAT) and the borrowed asset (KAT) are both KAT-denominated and move together. All inputs move with the market, so current APY is always live on the dashboard.

Risk parameters

Leverage target ~3.5x. Deliberately conservative; the loop is sized as a longer-hold position (see Exit below).

Liquidation risk is structurally near-zero. The Morpho oracle is the vault NAV (no external price feed), and both collateral and debt are KAT-denominated — so KAT/USD moves cannot liquidate the position, and accruing NAV de-levers it automatically over time. This market has recorded zero liquidations to date.

KAT-denominated returns. The loop amplifies KAT exposure — it does not hedge it. Yield is earned and reported in KAT; your USD outcome depends on the KAT price. ayKAT is leveraged exposure to KAT, not a market-neutral position.

Exit is a queued position. Redemption from avKAT enters a 60-day queue (2.5% fee floor; higher for immediate exit), and instant-exit liquidity is limited. ayKAT should be held as a longer-duration position and sized accordingly.

Variable, decaying accrual. avKAT staking accrual has trended down over recent epochs, so quoted yield moves — the dashboard is always the authoritative source.

Capacity. Deployable size is currently bounded by borrow-side liquidity on Morpho; capacity expands as the KAT supply side deepens.

Looping strategies involve leverage and carry liquidation and exit-liquidity risk. See Risk Taxonomy for full disclosure.

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