September 24, 2025 – Tea-Fi, the DeFi platform aiming to simplify the complexities of crypto, has quickly become the leading driver of on-chain activity on Katana, a Layer 2 (L2) network specializing in decentralized finance. Tea-Fi now accounts for one-third of Katana's registered users, signaling the growing demand for activity-based rewards in DeFi.

In the early days of DeFi, protocols relied on unsustainable token incentives to attract liquidity. While effective in the short term, interest often faded as payouts dried up. Tea-Fi represents a new wave of sustainable engagement—where users are rewarded not for idle speculation, but for meaningful on-chain activity such as swaps, vault deposits, and decentralized application (dApp) interactions.

At the center of Tea-Fi's ecosystem is the TeaPOT, a protocol-owned treasury fuelled by revenue streams across swaps, vaults, wallet fees, card payments, and ecosystem integrations. Yield generated by the TeaPOT powers:

  • TEA buybacks that strengthen token value.

  • TeaDrops, rewarding verified user activity.

  • Ecosystem growth, funding future utilities and partner support.

"Tea-Fi was built on the idea that every action should create value for the user and for the ecosystem," said Matan, Tea-Fi's CEO. "By tying rewards directly to real usage, we're keeping users engaged while fuelling long-term growth across the network."

Through the TeaPOT, users earn TEA rewards continuously for engaging with Tea-Fi modules such as SuperSwap, Vaults, and Wallets, as well as protocol-aligned apps (PAAs). Idle assets are automatically deployed into low-risk strategies, ensuring capital remains productive.

Katana x Tea-Fi: A unified DeFi approach

Rewards for real onchain behavior

Katana consolidates liquidity at the infrastructure level, while Tea-Fi amplifies product-level utility and Consolidates liquidity at the protocol level. Together, they share principles of keeping assets productive, rewarding genuine activity, and reinvesting returns to grow long-term value.

Source: https://dune.com/spaceharpoon/katana-analytics

The synergy extends to campaigns such as TeaParty, where users earn double Sugar Cubes for swaps done via Katana through Tea-Fi's interface. With over 6 million TEA tokens allocated for distribution, this initiative directly connects user activity to meaningful rewards.

Building for composability

Beyond short-term incentives, Tea-Fi is building the foundation for a composable DeFi future. With SDKs and APIs, developers can integrate Tea-Fi's tools to enable gasless transactions, wallet-native execution, and cross-app reward sharing. This approach ensures users benefit from a seamless, consistent experience across the DeFi landscape—whether swapping, staking, or interacting with partner apps.

About Tea-Fi

Tea-Fi is a self-custodial DeFi platform that transforms complexity into simplicity. It fosters self-custody, frictionless multi-chain execution, and simplified growth, it also empowers users with managed yield vaults, gasless transactions, AI insights, and a unified UX. With innovations like the TeaPOT (a compounding protocol treasury), EasyGas, and Protocol-Aligned Apps, Tea-Fi makes DeFi accessible, rewarding, and sustainable.

Learn more about Tea-Fi: https://tea-fi.com/