using bentonite clay on the homestead

I use bentonite clay for all sorts of things where I want to be able to absorb moisture without causing a mess.
Clean kitty litter/bentonite clay works great and is very cheap compared to other sources.
As long as you add other things to it, it will fall apart nicely.

The "liner" for ponds is usually pure bentonite spray, or otherwise used as a lone layer to keep water in. .

As far as actual kitty litter? We use compressed pine bedding for horses. It's absorbent, smells nice for quite a long time considering, and is biodegradable. I use the used litter, complete with feline additions, as "hole filler" in my backyard where the chickens scatter it all over. It's, slowly, improving our soil.  I wouldn't recommend using as compost, unless your pile reaches sterilizing temperatures. There can be nasty zoonotics that sneak up and make you ill..
(ed for spelling)

I wouldn't recommend using as compost, unless your pile reaches sterilizing temperatures. There can be nasty zoonotics that sneak up and make you ill..    

I used to worry about that, but then rationalized that I’ve got 2 cats of my own, plus neighboring cats and occasionally strays, all of whom are now and again peeing and pooping in my growing areas, so what really is the difference? Maybe concentration if you used all your compost in one spot?

That would be about it.

Between cats and chickens getting into it and spreading it all over, there's really not much problem with it. I usually add the "Accepted Practices" bit because there are people that aren't aware of the presence of transmissible diseases from cats to humans.

Like all things in Life, this is a "At Your Own Risk", but you are a free willed person capable of measuring your own risk.

Me? I pile it up, use it to fill holes and, if some of it ends up composted? It doesn't make the plants sick, so we're all good.