Katana Quests Phase 2: Earn XP, Win the Monthly vKAT Draw
Katana Quests are back, and the structure is new. Quests Phase 2 runs as a monthly prize draw. You earn XP for sustained onchain activity across Katana, every XP point is one ticket into an end-of-month draw, and the top 10 wallets drawn split a pool of locked vKAT.
The design does two things at once. It rewards the users who contribute the most to Katana with bigger odds, while still giving smaller wallets a shot at an outsized prize. More activity means more tickets, but every ticket can win.
Ready to start? Head to the Katana Quests page to begin earning XP.
How XP Works
XP accrues daily based on your continuous onchain positions and activity. Each action awards a fixed XP rate per unit of activity, per day. The rates are tuned so the relative incentive across activities reflects what matters most to the chain right now.
Two things to know:
XP is earned continuously. Holding a position or maintaining activity earns XP every day it stays on.
XP resets to zero at the start of each month, right after the draw is run. Every month is a fresh race.
The Earn Table
Each rate below is XP per day for every $10 of qualifying activity.
Stake
Hold a vKAT position: 25 XP
Hold an avKAT position, whether held directly, used as collateral in Morpho, or supplied to a Sushi LP: 25 XP
Trade
Perps taker volume: 150 XP
Swap on Katana: 60 XP
Borrow & Lend
Borrow USDC or USDT: 80 XP
Borrow WETH: 70 XP
Lend KAT on Morpho: 25 XP
Lend USDC on Morpho: 15 XP
Lend USDT on Morpho: 15 XP
Lend WETH on Morpho: 10 XP
Provide Liquidity (via Charm)
ETH/USDC liquidity: 50 XP
WBTC/USDC liquidity: 50 XP
KAT/USDC liquidity: 25 XP
KAT/ETH liquidity: 20 XP
A quick example. Lend $1,000 of USDC on Morpho and keep it there for a 30-day month. At 15 XP per day for every $10, that is 1,500 XP per day, or about 45,000 XP for the month. That is 45,000 tickets in that month's draw.
How the Monthly Draw Works
Monthly draw, top 10 winners. On the last day of every month at 00:00 UTC, XP balances are snapshotted. A weighted random draw selects 10 winners, with odds proportional to your XP. More XP means better odds, but the draw is still random. A small wallet can still take the top prize.
Pure proportional odds. No caps, no diminishing returns. A wallet with 100x the XP has 100x the odds at any given draw.
One prize per wallet. A wallet can win at most one tier per month. Once a wallet is drawn, it is removed from the remaining draws.
Live leaderboard. A public leaderboard shows real-time XP rankings throughout the month, so you can track your position and your odds.
Verifiably random. Winners are selected by a verifiably random off-chain draw.
Pool size. ~$12,500 per month in vKAT.
The Prize Curve
Big top, meaningful tail. The monthly draw pays out as follows:
1st: ~$10,000 in vKAT
2nd: ~$500 in vKAT
3rd: ~$250 in vKAT
4th: ~$250 in vKAT
5th: ~$250 in vKAT
6th: ~$250 in vKAT
7th: ~$250 in vKAT
8th: ~$250 in vKAT
9th: ~$250 in vKAT
10th: ~$250 in vKAT
Note: all values shown are approximate. Prizes are paid in vKAT, and the USD equivalent will move with the token price.
How to Start Earning
Before any XP counts toward the monthly draw, complete the Foundation quest track once. It is a one-time gate per wallet that does not reset month over month, and it is the program's primary anti-sybil mechanism, keeping the draw fair so every ticket traces back to a real participant.
Then:
Put your capital to work across any of the tracks above: stake, trade, borrow and lend, or provide liquidity.
Keep your positions on. XP accrues every day they stay open.
Check back at month end. The draw runs, winners split the pool, and XP resets for the next round.
Join the Katana community
Stay informed, engaged, and connected:
Are you a DeFi builder? Join us
Stay sharp, Samurai.
__________
Program Details & Disclaimer: No purchase necessary. Void where prohibited. Katana Quests Phase 2 is open to participants who are 18 or older, or the age of majority in their jurisdiction, and is not open to residents of the United States, the United Kingdom, Mainland China, Quebec, South Korea, Singapore, or any sanctioned country. Your odds of winning depend on the total number of entries. Prize values shown in USD are indicative only and all prizes are paid in locked vKAT. The full terms, including the free method of entry and complete eligibility, are in the Official Rules. This post is not investment, legal or tax advice and users are encouraged to consult personal investment, legal and tax advisors. This post and its contents, including the above-referenced statements related to any token, rewards, distributions, or program ("Program"), may be modified or terminated at any time without notice, and is subject to the Katana Foundation Official Rules, Privacy Policy, and Terms and Conditions. Governance of the program, interpretation of terms, and application of the Program to individuals is subject to the interpretation and sole discretion of the Katana Foundation. Participation in crypto and emerging blockchain technology involves risk, and by participating in the Program you agree not to hold Katana Foundation liable for any losses or damages that you may incur for any reason including without limitation technology errors, investment value declines, or Program administration.
