Restaking in crypto has recently gained significant attention as an extra means of maximizing staked returns while participating in network security. The process involves reinvesting staked digital assets, such as cryptocurrencies, to generate additional rewards and contribute to the overall security of a blockchain network.

This innovative approach has paved the way for the emergence of platforms like Karak Network, a unique multi-chain staking platform set to reform the restaking experience.

What is Karak?

Source: karak.network

Karak Network is a cutting-edge multi-chain staking platform designed to protect user security. It operates on the Ethereum blockchain and stands out as the only layer 2 project on the chain, offering risk management, staking, and AI infrastructure in one project.

One of its key goals is to eventually serve a billion users while also spearheading the integration of artificial intelligence into the global blockchain, Web3, and DeFi sectors. It achieves this by integrating with Celestia, which facilitates the development of highly secure rollups, ultimately enhancing resilience and security for other protocols in Karak’s ecosystem.

Karak Network also allows different protocols to leverage the security of major networks from their inception, thus simplifying the process of securing new protocols without relying on heavily diluted reward systems for validators. This approach eases the process of enhancing security for new projects and makes it more accessible and scalable.

History of Karak Network

Karak Network was founded in 2023 by Raouf Ben-Har and Drew Patel, both of whom have extensive experience in blockchain technology. Raouf has a strong professional background, having worked as a software engineer at major companies like Google, Tiktok, AWS, Coursera, and Goldman Sachs, and serving as vice president of product at Coinbase. On the other hand, Drew has served as a software engineer and portfolio manager at Coinbase and 8 Decimal Capital. In 2021, both founders launched Andalusia Labs.

Since its inception, the project has garnered significant support, successfully @andalusialabs/andalusia-labs-secures-48-million-in-series-a-funding-at-1-billion-valuation-launches-karak-a7f1ade92f49">securing $48 million in its Series A funding round from prominent investors, including Coinbase, Lightspeed, Framework, Digital Currency Group, Mubadala Capital, Pantera Capital, and others. The project is currently valued at a billion dollars, clearly reflecting the widespread confidence in its potential.

How Does Karak Network Work?

Karak Network is a platform that allows users to utilize their staked assets to enhance the security of Ethereum and other trusted networks for various applications and projects. The platform operates with three main features: a Distributed Secure Service (DSS), a restaking operation, and operators.

Karak Network allows stakers to allocate their assets to a Distributed Secure Service (DSS), giving them the option to grant additional enforcement rights to their staked assets. By agreeing to extra conditions, stakers ensure the security of the applications integrated with Karak. This additional layer of security also helps to meet the conditions of secured services like data availability protocols, bridges, and oracles.

Moreover, Karak functions as a marketplace where developers can offer non-diluted rewards to validators, encouraging them to allocate their restaked assets to secure services. This innovative approach in the blockchain space eliminates the need for applications to issue their own volatile and inflationary tokens as rewards for validators, ultimately simplifying the trust network process.

Karak’s universal restaking feature makes starting up and combining different networks easier. Its approach to multi-asset restaking helps standardize the capital needed, even if different blockchains have different rules for staking.

Regarding participation, users have several methods for restaking, including Liquid Staking/Restaking and using stablecoins. Liquid Staking Tokens (LSTs) or Liquid Restaking Tokens (LRTs) can be restaked on Karak, and stablecoins such as sDAI can also be restaked, providing a less volatile option for users.

Additionally, Karak Network leverages AI technology to detect and neutralize security risks by analyzing large amounts of data and identifying potential threats. This level of advanced analytics and predictive modeling capability allows Karak Network to provide clients with real-time insights and actionable intelligence to mitigate risk effectively.

Main Features of Karak Network

Source: iq.wiki/wiki/karak

Multiasset Restaking

Karak Network has introduced an innovative system that allows users to restake various assets, such as Ethereum, liquid tokens, and stablecoins. With this diverse portfolio, the network can prevent the failure of a single asset from undermining its DSS.

Modular Architecture

Karak Network’s modular system enables various modules to interact with each other, allowing the project to adapt to different needs and use cases easily. This approach enhances scalability and provides flexibility for accommodating diverse requirements.

Karak XP Program

The Karak XP Program is designed to reward users for staking their assets and bringing in new users to stake. Participants can earn Karak XP based on the timing and length of their staking period and the number of referrals they make using their unique invite code.

Besides staking, users can also earn Karak XP by actively participating in the Karak Network’s Discord community, creating content, and sharing memes. More ways to earn XP will be announced, offering even more opportunities to increase rewards.

It’s important to note that the rate of XP earned may change weekly. Users who hold tickets from earlier periods will receive XP once the program ends, but those who actively participate throughout the program can significantly increase their rewards.

Karak Network Ecosystem

Source: karak.network

KUDA

Karak Universal Data Availability (KUDA) is a decentralized marketplace that integrates various rollups and Data Availability (DA) layers. KUDA acts as a hub, granting access to all DAs and tackling common issues faced by rollups, such as vendor lock-in and complex maintenance problems, while reducing costs.

With KUDA, rollups can seamlessly connect to a wide range of DAs through a single application. This simplifies the development process and offers a complete solution, reducing infrastructure needs and updates. Additionally, KUDA provides built-in inclusion proving, which eases the development burden even further.

The functionality of KUDA revolves around a decentralized marketplace with three main participants: aggregators, operators, and challengers. Aggregators manage interactions with rollups, registering tasks like data posting requests, while operators are responsible for posting data to DAs and proving its authenticity. On the other hand, challengers ensure data integrity by questioning the validity of posted data.

The marketplace operates through tasks. Rollups post data posting tasks, specifying their preferred DAs and budget. Operators then compete for these tasks through a stake-weighted lottery system. The winning operator posts the data to the chosen DA and generates a receipt as proof, ensuring data integrity.

Moreover, KUDA employs a robust challenge system to uphold data integrity. Individuals can challenge a data posting and get rewards after a successful challenge. Operators can then vie to provide inclusion proof, essentially demonstrating the presence of the data on the DA. This system prevents malicious behavior through slashing mechanisms that penalize incorrect data posting and baseless challenges.

Subsea

This risk management protocol features an automated invariant detection mechanism that protects users from all kinds of risks, hacks, and attacks. This approach prioritizes transparency and impartiality and reduces reliance on intermediaries. Currently, it has secured over a billion dollars worth of digital assets.

Subsea protects assets from different risks and attacks, and features a risk engine dedicated to identifying and analyzing risk scenarios. As such, users can customize their asset allocation according to their unique risk profiles.

SlashProof

Slashproof is the first platform that protects staked and restaked assets using zero-knowledge proofs. It achieves this by using cryptographic techniques to verify if a validator has been penalized without compromising privacy. This extra layer of security safeguards users’ assets from risks like slashing events, and encourages more individuals to engage in network security through staking and restaking.

Hyperlane

Hyperlane is an interoperability layer that facilitates secure cross-chain communication. It manages the interaction between applications on different blockchains, allowing them to access dApps, functionalities, and assets on other blockchains. Hyperlane’s permissionless interoperability drives Karak’s interchain communication across various blockchains such as Arbitrum, Optimism, and others.

The platform offers a permissionless and modular approach, meaning anyone can leverage their technology to connect to other blockchains. This flexibility allows developers to customize their applications according to specific requirements, promoting innovation and catering to diverse blockchain use cases.

Pendle

Pendle is a DeFi platform focusing on tokenized future yield, allowing users to separate the ownership of a yield-generating asset from its future yield. This separation splits the asset into two different tokens: a Principal Token (PT) that represents the underlying asset, and a Yield Token (YT) that captures the potential future yield. This split enables users to choose their approach, as they can either opt for a fixed-rate yield through Pendle’s v2 AMM (Automated Market Maker) system, or they can embrace a variable-rate yield that fluctuates based on market conditions.

Pendle enables users to restake their PTs from platforms like Swell, Etherfi, and Kelp on Karak Network, and earn Karak XP on top of their PT yield.

K2 Bridge

The Karak Network K2 Bridge is designed to facilitate seamless cross-chain transfers and interactions. It offers a comprehensive solution for connecting different blockchain networks, enabling users to transfer assets and data securely and efficiently.

To deposit to the K2 Bridge, connect your wallet, and select the ‘Deposit’ tab. Afterwards, choose a network to deposit assets from, and then select the asset and amount you wish to deposit from the drop-down menu. Click the “Deposit” button and sign the transaction. Once the transaction is confirmed, your assets will be available on K2.

To withdraw from the K2 Bridge, you’ll need to follow a three-step process. First, head to the K2 website and connect your wallet. Then, select the “Withdraw” tab. After that, choose a destination network for the withdrawal and select the specific asset and amount you want to withdraw from the drop-down menu. Click the “Withdraw” button and sign the transaction (please note that this process cannot be reversed).

After four hours, check the “Outgoing” tab on the site and click the “Prove” button to sign the transaction on the destination network. Three days later, check the “Outgoing” tab again and click the “Finish” button to complete the withdrawal. Once these steps are completed, your assets will be successfully withdrawn from K2.

News on Karak Network

On June 26th, 2024, the interoperability platform Wormhole integrated with Karak Network’s K2 blockchain to expand its multichain ecosystem. Wormhole is now the first Distributed Secure Service (DSS) on Karak Network. This integration allows Karak Network to access liquidity from over 30 blockchains and enables seamless transfer of messages and tokens across blockchains such as Solana, Sui, and Injective.

Conclusion

By offering a multi-chain staking platform focused on security, AI integration, and risk management, Karak empowers users to participate in a safer and more rewarding DeFi experience. With its goal of creating a billion-user ecosystem and championing interoperability across Web3, DeFi, and blockchain technology, Karak Network is set to become a key player in the future of blockchain.