What is Karak Network?

What is Karak Network?

Karak Network is the most adaptable restaking platform, allowing users to stake various assets from Ethereum and stablecoins to liquid staking tokens and other L2 tokens across multiple blockchains. By utilizing Distributed Secure Services (DSS), it channels these staked assets to protect decentralized services like oracles, bridges, and data availability protocols.

In Karak V2, the platform introduces a streamlined architecture with four core contracts: Core, Vault, SlashingHandler, and DSS, for easier scalability of the restaking protocol. Additionally, the removal of invite codes offers easier access, while the upcoming slashing mechanism will penalize underperforming operators, enhancing overall network security.

With over $48 million in funding and support from giants like Pantera Capital and Coinbase Ventures, Karak is positioned to expand its ecosystem and continue its mission to provide universal crypto-economic security across any network.

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How Does Karak Network Work?

With Karak, users can lock up their assets to help safeguard decentralized applications, and a penalty system ensures accountability if operators fail to perform their assigned tasks.

Here’s a simplified breakdown of how it works:

• Karak Core: The core manages vaults, assets, operators, and DSSs, facilitating slashing requests and enabling seamless restaking operations.
• Restaking Process: Users deposit staked assets (Ethereum, LSTs, stablecoins) into Karak's core vaults and choose an operator to which to delegate them to.
• Operators: They are rewarded by DSS for validating and securing decentralized services through successful task performance.
• Distributed Secure Services (DSS): DSS uses restaked assets to secure applications like oracles, bridges, data availability protocols, and other decentralized services.
• Slashing Mechanism: DSS can slash operators' restaked assets if they fail to perform important or required security tasks.
• Marketplace for Security: Developers offer validators non-dilutive rewards to encourage them to secure their applications without issuing new tokens.
• Composability Across Networks: Karak enables restaking across multiple networks, helping standardize security for different blockchains beyond native restaking.

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How to Restake Assets With Karak Network

Using Karak Network to restake your assets and participate in its security framework is straightforward. Follow these steps to get started:

1. Access the Karak App: Visit the official Karak Network V2 app at v2.karak.network and connect your crypto wallet (e.g., MetaMask).
2. Deposit Your Assets: After logging in, choose the chain, operator and asset you want to restake and click "Deposit" to transfer it into the Karak vault.
3. Confirm the Transaction: Approve the transaction and once confirmed, your asset will be deposited into the Karak vault.
4. Earn XP: Once restaked, you will begin earning XP and any rewards associated with restaking. The longer your assets remain staked, the more XP you accumulate.
5. Monitor and Manage Your Portfolio: Track your staked assets, withdrawal status, and XP progress through the Karak app dashboard.
6. Withdrawing from Karak Network: Go to the asset’s page, click "Unstake," and confirm the transaction. The withdrawal takes 7 days, during which time you will still earn XP. After the waiting period, return to the page and click "Withdraw" to get assets back to your wallet.

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Karak V2 Explained

Karak V2 Mainnet recently launched following a successful testnet phase that began in July. During the testnet, Karak saw significant growth, onboarding over 240,000 users and securing more than $1 billion in assets locked. With this foundation, the mainnet rollout is happening in two distinct phases to ensure a smooth transition and enhanced security.

Phase 1, which is live now, focuses on migrating users' assets from Karak V1 to V2. Currently, only Arbitrum is available for migration, but more chains will be added in the coming weeks. Users can stake assets like USDC, USDT, and wETH, and invite codes have been removed, making the platform more accessible to all users.

Phase 2 is coming soon and will introduce slashing, a mechanism to penalize operators who fail to perform their tasks, providing stronger security for stakers. Additionally, this phase will launch rewards for both stakers and operators, and more networks and services will be integrated, further expanding the platform’s functionality and reach.

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Karak Network Airdrop and XP Program

Users can earn XP directly through the Karak app, with a potential airdrop. Unlike Karak V1, the new V2 version has removed invite codes and referral-based XP. As of late October, users can still earn XP using the V1 app by entering 15Wfj as their invite code.

The Karak Network XP Program allows users to earn XP by restaking crypto assets, with rewards increasing the longer assets are staked. Community participation, such as writing content, can also earn bonus XP, while the Karak Galxy campaign offers 150 points.

Karak Network Airdrop Takeaway:

• XP may have future utility in governance or rewards.
• Earn XP by restaking assets (ETH, LSTs, stablecoins) on the platform.
• The longer you stake, the more XP you accumulate.
• Community participation can provide additional XP.
• Karak V2 no longer supports invite codes or referral XP.
• Karak V1 is still accessible if you have an invite code.
• BONUS: Users can restake eETH and weETHk on Pendle.

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Karak vs EigenLayer, Symbiotic & Babylon Chain

Karak, EigenLayer, Symbiotic, and Babylon Chain are all restaking protocols, but each takes a different approach to secure blockchain networks or decentralized applications.

• ‍Karak vs EigenLayer: Karak supports a wide range of assets across multiple blockchains, whereas EigenLayer is more focused on Ethereum and its staking ecosystem, making Karak more versatile for developers working beyond Ethereum.‍
• Karak vs Symbiotic: Both offer flexibility with asset support, but Karak emphasizes multi-chain interoperability, allowing restaking across various ecosystems, while Symbiotic remains more centered on Ethereum's ecosystem.‍
• Karak vs Babylon Chain: Babylon Chain leverages Bitcoin's consensus to secure proof-of-stake chains, while Karak focuses on a broader multi-chain restaking solution that supports various asset types beyond just Bitcoin.

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Who is the Founder of Karak Network?

Karak Network was founded by Raouf Ben-Har and Drew Patel, with the vision of creating a universal restaking layer for crypto-economic security. Both founders sought to address the problem of fragmented security in the blockchain space, which was preventing startups from scaling effectively.

Raouf Ben-Har, based in San Francisco and Abu Dhabi, emphasized that Karak allows developers to build on any trust network without being confined to Ethereum, while Drew Patel explained that Karak's Validation-as-a-Service (VaaS) model offers universal security across multiple assets and chains.

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Karak Network Funding

Developed by Andalusia Labs, Karak Network raised $48 million in Series A funding at a valuation exceeding $1 billion in late 2023. The round was led by Lightspeed and included investors like Mubadala Capital, Pantera Capital, and Coinbase. This funding aims to accelerate Karak’s product development and support expansion with a new Abu Dhabi headquarters.

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Bottom Line

Karak Network offers the most diversified type of restaked assets, surpassing competitors like EigenLayer and Symbiotic with support for 40 different tokens across 7 blockchains.

Some may view the Karak V2 mainnet as a minor upgrade at first glance, but we believe its full potential will show as more tokens and services are integrated, and the slashing mechanism begins operating at full power.

Many users are eager for the launch of a native token, but Karak warns against false claims and recommends relying solely on official channels for accurate information. Still, given the recent hack of EigenLayer's X to advertise a fake token, we advise being extra careful.