Katana | Sushi — Swaps, Liquidity Pools & LP Rewards
Learn how Sushi works on Katana: V2 and V3 pools, swaps, LP fees, concentrated liquidity, KAT incentives, in-range positions and LP risk.
Sushi on Katana
Sushi is Katana’s core decentralized exchange. Swaps execute against liquidity pools rather than a traditional order book, and liquidity providers supply token pairs that enable trading.
V2 and V3 pool models
V2 full-range pools keep liquidity available across the entire price curve. V3 concentrated-liquidity pools let LPs choose a price range, improving capital efficiency but requiring active range management.
How LPs earn
Liquidity providers can earn trading fees when users swap against their pools. Eligible staked positions may also receive KAT incentives when their market receives gauge weight. Concentrated positions earn only while price remains inside their active range.
Rebalancing concentrated liquidity
When price leaves the selected range, a V3 position stops actively providing liquidity. Rebalancing generally means unstaking if necessary, removing liquidity, creating a new position around a chosen range and restaking the new position.
Risks
LPs face smart-contract risk, impermanent loss, range risk, token volatility and changing incentive levels. A high displayed APR can fall quickly if trading volume, reward allocation or token prices change.
Integration perspective
Developers can quote swaps, route trades, inspect pool liquidity and interact with V2/V3 positions using standard EVM tooling plus Katana-specific contract references. Applications should account for token approvals, slippage and pool fee tiers.
Frequently Asked Questions
What types of Sushi pools exist on Katana?
Sushi supports full-range V2 pools and concentrated-liquidity V3 pools.
When does a V3 LP earn fees?
A concentrated position earns while the market price is within its selected range.
Can LPs receive KAT incentives?
Eligible positions can receive incentives when their pools receive gauge allocations.
What are the main LP risks?
Key risks include smart-contract risk, impermanent loss, token volatility, range risk and changing incentives.