Everlong, a synthetic liquidity and yield engine for Bitcoin and Ether, has raised strategic investment from GSR.
The size of the round was not disclosed, but GSR is the sole investor and long-term strategic partner.
The protocol is designed to help depositors earn organic, fee-based yield on BTC and ETH while staying fully long.
Everlong plans to launch natively on Katana, an Ethereum Layer 2 focused on high-performance DeFi execution and liquidity.
Everlong routes chain-level revenues back to users, aiming to boost yields and deepen liquidity across the Katana ecosystem.
The team says the protocol has already outperformed simple BTC and ETH holding strategies, including during high-volatility periods.
At the core of Everlong’s design is a CDP-based architecture that mints synthetic liquidity without recurring borrowing costs.
This structure is intended to preserve full BTC and ETH exposure while removing liquidation risk and interest-rate drag.
Depositors can deploy their assets into automated market makers, capturing swap fees while avoiding traditional impermanent loss dynamics.
The model seeks to increase the “working capital” of idle assets, turning passive holdings into actively deployed liquidity positions.
Everlong also targets a second structural weakness in DeFi: capital efficiency and liquidity around CDP-based stablecoins.
By generating internal liquidity, the protocol aims to support deeper markets for synthetic dollars and leverage venues on-chain.
The team says the result is a self-reinforcing system that can underpin DEXs, lending markets and synthetic asset stacks.
In theory, the same liquidity rails could support cross-asset routing and integrated margin across multiple on-chain venues.
GSR will advise Everlong on token design, liquidity strategy, risk modeling and institutional integrations as the protocol scales.
The trading firm will also support ecosystem expansion on Katana and other networks connected through cross-chain infrastructure.
“Everlong is pioneering a new category in DeFi: synthetic liquidity as a yield source,” said GSR’s Alain Kunz.
He said the system “preserves long exposure while turning volatility into sustainable returns,” positioning it as core BTC, ETH infrastructure.
Katana executives say Everlong’s engine fits the chain’s design, which concentrates liquidity into a small set of core protocols.
Katana funnels ecosystem revenues and sequencer fees toward those venues, seeking deeper liquidity and higher, more sustainable on-chain yields.
Alex, DeFi systems lead at Katana, called Everlong “exactly the type of high-performance DeFi primitive” the chain targets.
He said the protocol’s synthetic liquidity engine aligns with Katana’s broader “flywheel” around incentives and protocol-level revenues.
GSR, founded in 2013, operates as a major liquidity provider, OTC desk and venture investor across digital assets.
Its backing often signals market-maker interest in supporting secondary liquidity once tokens or protocols go live.
Everlong enters a crowded field of DeFi yield products as investors reassess risk after repeated boom-and-bust cycles.
The project is betting that synthetic liquidity, fee-driven returns and full-asset exposure will resonate with BTC and ETH holders.
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