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Katana

Overview​

Katana (app.roninchain.com/swap) is a decentralized exchange (DEX) for trading tokens within the Ronin ecosystem. The AMM (automated market maker) protocol that powers Katana allows users to swap tokens, create liquidity pools, and stake LP tokens to earn rewards.

Katana v2 vs v3​

Katana v2 is a previous version of the Katana smart contract, which is still operational. Katana v3 is the latest version, which introduces concentrated liquidity, fee tiers, and improved oracles. When creating a liquidity pool, you can choose to use either Katana v2 or Katana v3.

Features​

  • Concentrated liquidity: Katana v3 allows liquidity providers (LPs) to allocate their liquidity within a specific price range, significantly improving capital efficiency. LPs can now earn higher returns on their assets by concentrating their liquidity where it's most needed.
  • Fee tiers: Katana v3 introduces multiple fee tiers to accommodate different types of trading pairs. This flexibility enables LPs to choose fee structures that best suit their risk/reward preferences and market conditions.
  • Improved oracles: Katana v3 brings enhanced smart contract-based oracles that provide more accurate and reliable price feeds. These oracles help reduce the reliance on external data sources and increase the overall robustness of the system, ensuring better price feeds for on-chain transactions.
  • Lower swap fees: thanks to the multiple fee tiers in Katana v3, users can enjoy lower swap fees for high-volume stablecoin pairs, making it more cost-effective to trade stablecoins on the platform.
  • Lower slippage: concentrating liquidity within specific price ranges helps execute trades closer to the market price with less price impact, especially valuable during high volatility.

Get started​

View your connected wallet​

After connecting your Ronin Wallet to Katana, you can see the amount of RON you own and the wallet address you're connected to.

To view more details, click the options in the top right-hand corner:

  1. Network switch: this allows you to switch between the Ronin mainnet and Saigon testnet networks.
  2. User icon: this opens the page for your connected address in Ronin Block Explorer.
  3. Eye icon: this allows you to hide your wallet balance.
  4. Connected address: this allows you to copy your Ronin Wallet address to the clipboard or log out of the Ronin app.

Approve tokens​

When you first interact with a token, Katana prompts you to approve it. This means you're allowing a smart contract to interact with your token. This is a one-time action for each token, and the prompts appear visibly before you can continue with your desired actions.

For example, to stake an SLP/WRON token pair, you need to approve it first. Click Approve SLP/WRON, then confirm the transaction in your Ronin Wallet.

Switch between v2 and v3​

To switch between Katana v2 and v3, you can select the version you want to interact with.

On the Liquidity page, click the V2 Pools or V3 Pools switch in the top left-hand corner of the pool list.

On the Swap page, go to Transaction Settings and select the version you want to use under Default trade options. The default setting is Katana v3.

Trade "main" and "seed" tokens​

Katana classifies ERC-20 tokens into "main" tokens and "seed" tokens, which have different risk profiles:

  • “Seed” tokens have a higher risk profile and volatility. They may be designed to be highly experimental and inflationary at their inception. In the user interface, “seed” tokens are marked with a plant icon.
  • "Main" tokens are defined against a non-exhaustive list of factors: depth of liquidity, market capitalization, volumes, and whether the team is verified. For example, RON and WETH have a "main" tag.
  • All newly launched tokens are tagged as “seed.” Tags are reviewed on a regular basis and tokens can be relabelled to "main" after a period of time in the market based on improvements in certain factors.

Anyone on Katana can trade both "main" and "seed" tokens.

For easier identification, "seed" tokens are marked with a plant icon:

When you first interact with a "seed" token, Katana prompts you to acknowledge the risks involved:

Note: Providing liquidity involves risks including impermanent loss, especially if asset prices change significantly. We encourage you to assess your risk tolerance before participating.