What is VaultBridge ⬇️ VaultBridge turns a “plain bridge” into a “yield bridge”: when users bridge ETH/USDC/USDT/WBTC, the L1 assets are automatically deposited into @MorphoLabs ERC‑4626 vaults on Ethereum, so capital becomes productive by default. Users receive a 1vs1 vbToken on @katana (vbETH, vbUSDC, etc.) that retains parity and can be used across DeFi apps, while network-level yield is generated from the underlying vault positions.​ How it works under the hood ⬇️ Routing and custody bridged assets are held in the VaultBridge contracts and deposited into pre‑curated Morpho vaults (ERC4626) on Ethereum users mint a 1vs1 vbToken on @katana that represents their bridged balance.​ Risk curation: strategy selection and risk parameters are curated by independent managers ( Gauntlet, Steakhouse Financial) to target low volatility, repeatable yield rather than max APY.​ Yield stream: interest earned from Morpho lending strategies is periodically streamed back on chain to Katana via native VaultBridge contracts for distribution by governance ( to boost core DeFi pools, CoL, or ecosystem incentives).​ UX and compatibility no bespoke integrations are required; it works with standard bridge flows, supports opt‑in/opt‑out for users, and doesnt replace canonical bridges on existing chains.​ Why it matters for @katana ⬇️ Productive TVL by default: all net‑new bridge inflows become working capital without fragmenting liquidity across dozens of protocols.​ Real yield, not emissions: network revenue scales with TVL and activity, reducing reliance on inflationary token incentives.​ Better builder economics... chain owned liquidity and VaultBridge yield deepen core markets (@MorphoLabs , @SushiSwap , Perps), improving execution and lowering the cost of bootstrapping new apps.​ Key nuances and boundaries ⬇️ vbTokens dont auto‑accrue APY to holders: parity is maintained at 1к1 end users get boosted returns when dApps route VaultBridge revenue into their pools or incentives.​ Segregated accounting: assets under VaultBridge are isolated from non VaultBridge flows, easing risk management across AggLayer connected chains.​ Governance driven distribution vault yield is an L2 level revenue stream how much reaches end users depends on on chain allocation decisions and app integrations.​ Mini user flow ⬇️ Bridge 1 ETH to Katana receive 1 vbETH on Katana the L1 ETH is deposited into a Morpho vault.​ Use vbETH in Katana DeFi (swaps, LP, margin) ➡️ liquidity stays local while network revenue accumulates from the L1 strategy.​ dApps surface the revenue: incentives or fee rebates funded by VaultBridge streams enhance vb asset returns for active users. @alpha_katana @kenseionkatana