dTRINITY Expands to Katana

Minh Nguyen
7 days ago
6 min read

GM samurais ⚔️

We haveofficially launched on Katanawith the expansion of dUSD!

Mint dUSD using other stablecoins & YBS
First liquidity pool is live on Sushi Swap
Earn Katana ecosystem incentives

Coming soon:

Subsidized lending & borrowing markets on Morpho
Staked dUSD (sdUSD), powered by Morpho markets
dT Points & referral program

Why Katana?

Katana is a Polygon-incubated Ethereum L2 built to concentrate liquidity into core apps like Sushi and Morpho, using chain-level ve(3,3) tokenomics to align incentives and recycle fees into chain-owned liquidity (COL). This design creates sustainableyields and capital-efficient markets for stablecoin protocols like dTRINITY, which leverages Katana’s productive-liquidity incentives to amplify its subsidized borrowing model and credit flywheel.

What is dTRINITY?

An overview of dTRINITY’s ecosystem on Katana

dTRINITY, short for DeFi Trinity, is the world’s first subsidized stablecoin protocol — a new primitive designed to supercharge DeFi markets.

The protocol features dUSD, a decentralized stablecoin fully backed by exogenous reserves. dUSD is the first demand-centric stablecoin where reserve earnings are distributed as interest rebates to its borrowers.

By paying users to borrow, dTRINITY is able to shift the demand curve upward, creating a higher supply-demand equilibrium that unlocks greater capital efficiency and yields for dUSD.

dTRINITY is live now on Katana, Fraxtal, and Sonic (app.dtrinity.org). Expansions to Ethereum and other chains are coming soon!

What is dUSD?

Katana dUSD mint & redeem widget (as of 10/10/2025)

dUSD is a USD-pegged stablecoin, fully backed by other USD-denominated stablecoins and yield-bearing stablecoins (YBS). It is the unified liquidity layer of the dTRINITY ecosystem.

Reserve Assets: Every token is backed by at least 1 USD worth of reserves, initially USDC, USDT, AUSD, frxUSD, sfrxUSD, and yUSD.
Minting & Redemption: Users can mint or redeem dUSD permissionlessly and atomically. There is no minting fee. Redemption has a 0.4–0.5% fee.
Staking: Users can stake dUSD and receive sdUSD, the liquid receipt token for dTRINITY’s ERC4626 vault that automatically supplies the staked dUSD into Morpho lending markets to earn yield and rewards. Staking/unstaking are also permisionless and atomic. There is no staking fee. Unstaking has a 0.1% fee and is based on available liquidity on Morpho.
Borrower Subsidies: The yield from dUSD’s reserve is used to fund ongoing interest rebates for its borrowers on Morpho. These rebates help lower their net Borrow APYs, boosting credit demand and utilization — ultimately raising Supply APYs for lenders as well.
Open Market Operations: In addition to open minting and redemption, dTRINITY optimizes price stability and liquidity for dUSD on DEXs through Stability Market Operations (SMO) and Algorithmic Market Operations (AMO). SMOs repuchase dUSD at a discount from the market using underlying reserves, typically when borrowers increase leverage. Conversely, AMOs create and sell new dUSD into the market when it’s trading at a premium, typically when borrowers deleverage. These SMO and AMO mechanisms allow dTRINITY to stabilize its stablecoins during credit expansion and contraction cycles while capturing arbitrage profits to over-collateralize underlying reserves, further strengthening stability over time.
Chain-Isolated Reserves: Katana dUSD is not fungible with Fraxtal dUSD and Sonic dUSD or dUSD issued on any other networks. This separation exists by design because dTRINITY maintains isolated reserves on every chain it’s deployed on, preventing contagion risk while strengthening reserve integrity on each chain.

Trading & Liquidity

First Sushi liquidity pool for dUSD (as of 10/10/2025)

The second key component of dTRINITY’s ecosystem are external liquidity pools for dUSD and sdUSD on partnered DEXs like Sushi Swap. These pools enable efficient swaps between dUSD, sdUSD, and other Katana assets, plus yield opportunities for LPs who provide liquidity. They also serve as collateral liquidation venues for Morpho and open market operation venues for dUSD.

Thanks to subsidized borrowing demand, the velocity of dUSD and sdUSD also get boosted as users swap them on DEXs to leverage/deleverage, generating more volume and fees for LPs on top of SUSHI rewards and ecosystem incentives.

Lending & Borrowing

Morpho is one of the world’s largest lending protocols. It forms Katana’s credit backbone and the final key component of the dTRINITY ecosystem, enabling assets like dUSD to circulate through productive, incentive-aligned lending markets.

Lenders can supply dUSD to earn yield and rewards, including Katana ecosystem incentives. Morpho lending vaults also power sdUSD, providing it with secured yield and liquidity.
Borrowers can supply various assets, including YBS, to borrow dUSD. Borrowers pay a raw interest rate but they’re also subsidized by dUSD interest rebates, distributed via Merkl. This, in turn, reduces their effective borrowing costs and boosts borrowing demand.
Loopers of YBS can borrow dUSD and earn rebates to amplify net yield generation. Loopers can also reduce leverage and risk exposure since rebates offset borrowing costs, allowing them to achieve the same net yields with less collateral/debt compared to borrowing unsubsidized stablecoins like USDC or USDT.
Loopers of sdUSD can borrow other stablecoins to amplify net yield generation as well.

When utilization rates are low, dUSD borrowers may even experience negative interest rates, which means they are effectively getting paid to borrow (net of rebates). The lower the utilization rate, the more negative borrowing rates become due to less outstanding debt vs. available rebates.

Due to increased borrowing demand, dUSD’s credit utilization on Morpho could become higher than average, which means dUSD’s lending rates may also rise to above-market levels, improving yields for lenders.

What a subsidized Borrow APR curve looks like

Note: dUSD is disabled as borrowing collateral by default to mitigate subsidy arbitrage. For the same reason, borrowing dUSD against sdUSD as colloteral is not subsidized by the protocol.

dT Points Program

dUSD borrowers are subsidized with interest rebates but they do not earn dT Points, dTRINITY’s incentive program for lenders and LPs. All points will convert to dTRINITY’s future governance token at the TGE.

Users may also earn Katana Points and/or other points and rewards from Katana ecosystem partners.

Points Mechanics

Unique Points per Chain: dT Points are chain-specific, non-transferable, and valid only on the chain they’re assigned to. They are not fungible with points assigned to other chains. At the TGE, each chain’s dT Points will convert into tokens at different ratios based on the protocol’s TVL and history on that chain.
Fixed Daily Points: One million dT Points are distributed daily to lenders and LPs on each chain where dTRINITY is deployed on.
Pro-Rata Distribution: Each wallet earns a pro-rata share of daily points distribution based on how much much dUSD it’s lending or providing liquidity with, relative to all other participating wallets on that chain.
Lending vs. LP: Currently, both lenders and LPs earn a 50x multiplier for every $1 of contributed TVL. These multipliers are subject to change by the protocol based on market conditions.

Referral Program

10% Active Boost

Join our Discord to get a referral code from an existing user. Afterward, navigate to the Points Dashboard, connect your wallet, and click on “enter referral code.” After submitting a code, your wallet will start earning 10% more points from lending and LP activities each day. You will also receive a unique referral code afterward to share with others.

10% Passive Bonus

Share your referral code to get a passive bonus of 10% based on the amount of dT Points that your referees earn.

Katana Roadmap

Launch Morpho dUSD lending markets & vaults, enabling borrowing against BTC & ETH assets as well as YBS
Launch Merkl campaigns to subsidize dUSD borrowers on Morpho
Launch Staked dUSD (sdUSD), powered by Morpho dUSD markets
Launch sdUSD markets on Morpho, enabling borrowing against sdUSD
Launch more Sushi liquidity pools for dUSD & sdUSD
Launch PT/YT markets for sdUSD on Spectra
Partner with Katana, Sushi & Spectra on LP incentives to deepen liquidity & boost yields
Partner with Morpho vault curators to manage risk
Partner with yield aggregators & DEX aggregators
Partner with other stablecoins, YBS, and RWA protocols
Plus more TBD

📢 Join the dTRINITY community to get the latest updates!

Disclaimer: dTRINITY is not available to residents of Canada, Iran, North Korea, Russia, the USA, the UK, and other restricted regions.

The information contained herein should not be considered legal, business, financial, or tax advice. Past performance is not indicative of future results. Digital assets and DeFi protocols carry significant risks, including the potential for complete loss of funds. By using dTRINITY, you acknowledge and accept these inherent risks. View our full Disclaimer and Terms to learn more about the risks involved.