Karak

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1 Jun 2024

Accelerating the new Internet with Universal Security

What is Karak?

Karak is the universal restaking layer that makes it easy to provide cryptoeconomic security with any asset, and unlocks a new design space for developers to seamlessly and securely create innovative infrastructure designs.
Karak enables protocols to tap into robust and secure trust networks from day one, significantly lowering the barrier to securing new protocols and eliminating the need for protocols to incentivize their own validator sets with a highly dilutive reward mechanism, making the process of bootstrapping security more scalable, accessible, and affordable.

How does Karak work?

Karak enables users to repurpose their staked assets to extend Ethereum as well as other trust networks' security to other applications.
Stakers can allocate their assets to a Distributed Secure Service (DSS) on the Karak network and agree to grant additional enforcement rights on their staked assets. The opt-in feature creates additional slashing conditions to meet the conditions of secured services such as data availability protocols, bridges, or oracles. The slashing conditions enforce participant integrity and ensure the security of the applications utilizing Karak is upheld.
Karak operates as a marketplace where developers get to incentivize validators to allocate their restaked assets to secure their secured services. This is a step-improvement to applications having to issue their own highly inflationary tokens as rewards for validators and having to establish a new trust network from the ground up. With Karak, developers can make it attractive for validators to choose their projects through simple, non-dilutive incentives. This significantly reduces the financial and temporal investment required compared to building a new trust network from scratch.
Furthermore, Karak's universal restaking facilitates enhanced bootstrapping and composability across various networks. Despite the varying staking parameters of different blockchains, introducing a multi-asset restaking approach can help standardize these capital requirements.

How is Karak different?

Multiasset restaking: Karak introduces multiasset restaking, a new primitive in cryptoeconomic security allowing users to restake assets such as ethereum, liquid staking tokens, stablecoins, and more to earn rewards. Multiasset restaking also supercharges security for various applications, protocols, and distributed secure services (DSS) within the Ethereum ecosystem and beyond.
Restake anywhere: Karak internalizes the ethos of universal restaking, which streamlines the bootstrapping of security and network composability while making secure restaking infrastructure accessible to everyone, everywhere. This also allows developers to now focus more on innovation and building products, and less on bootstrapping security.
Turnkey development: Karak enables unique systems to tap into robust and secure trust networks from day one, significantly lowering the barrier to securing new protocols and eliminating the need for protocols to incentivize their own validator sets with a highly dilutive reward mechanism, making the process of bootstrapping security more scalable, accessible, and affordable.

Ecosystem Overview

Karak’s architecture consists of several key components.

Restakers

Restakers contribute to universal security across Ethereum and other blockchains in exchange for rewards.

Distributed Secure Services (DSS)

Distributed Securee Services utilize the restaked assets to enhance security while reducing operational expenses.
Example: Several Distributed Securee Services will be unveiled in the coming weeks, including core services incubated by Karak contributors.

Chains

Chains or rollups leverage the services rendered by distributed secure services.
Example: K2 is a risk management L2 currently built on top of Karak that will leverage services provided by distributed secure services. As performing operations and activities on the L1 can be prohibitively expensive for both developers and users, K2 will also serve as the de facto sandbox for all DSS's to develop, test, and launch mission-critical protocol upgrades before having to enshrine services on the L1. Moreover, by adding custom precompiles that enable even more validators to validate DSS's, K2 is providing the infrastructure that will allow for services to become more decentralized than ever before.

Operators

Operators, whether an individual or an organization, perform essential validation and security for distributed secure services.

Restaking methods

For now, users can participate in restaking through several methods, including:

Liquid Staking/Restaking: Users have the option to restake by depositing their Liquid Staking Tokens (LSTs) or Liquid Restaking Tokens (LRTs) into Karak smart contracts. Validators can take LSTs or LRTs that have already been staked in protocols like Lido, Rocket Pool, Mantle, and Etherfi and restake these assets on Karak.
Stablecoins: Another novel method is giving users the ability to restake by depositing their stablecoins into Karak smart contracts. Validators can take stablecoins that have already been staked in protocols like sDAI and restake these assets on Karak.

Restaking Guide

Deposit

Navigate to http://app.karak.network
Enter your invite code to access the app
Connect your wallet
At the top of the homepage, you can view how much XP you accumulated, the amount of assets you restaked denominated in ETH, the amount of assets you restaked denominated in USD, and at the top right corner of the screen, your referral codes that you can share with your friends
On the homepage, click on the asset that you want to restake
In the selected assets page, navigate to the orderbox and click on the "Deposit" tab. Transactions on K2 require ETH for gas, ensure you reserve enough to pay for restaking transactions. Enter the amount that you want to deposit, sign an approval transaction, and then restake
Click "Deposit" and wait for the deposit transaction to be confirmed
Once your deposit transaction is confirmed, a successful transaction notification will appear
Congrats! You are now restaked and earning points on your assets
Don't forget to share your referral code with your friends and restake more assets to earn more points

Withdraw

Navigate to the page of the asset you want to withdraw
In the orderbox, click on the "Unstake" tab. Enter the amount of the restaked asset you want to withdraw, then click "Unstake"
Once you click "Unstake" the unstaking period begins. Note that for security reasons, the withdrawal period takes 14 days and cannot be reversed. Also note, you stop earning points once you unstake
Once 14 days have passed by since you unstaked, navigate back to the "Unstake" tab. Your assets will now be available to withdraw
Click "Withdraw" to finish withdrawing your assets

K2 Bridging Guide

Deposit to K2

Navigate to https://karak.network/bridge
Connect your wallet
Select the ‘Deposit” tab
Choose a network to deposit assets from
From the drop-down button, select the asset you wish to deposit
Select the amount you wish to deposit
Click the “Deposit ” button and sign the transaction
Once the transaction is confirmed your assets will be available on K2.

Withdraw from K2 (3 step process)

Navigate to https://karak.network/bridge
Connect your wallet (Ensure your wallet is connected to the Karak network)
Select the “Withdraw” tab
Choose a destination network to withdraw to
From the drop-down button, select the asset you wish to withdraw
Select the amount you wish to withdraw. (Ensure you have enough ETH to pay the withdrawal transaction gas fee)
Click the “Withdraw ” button and sign the transaction (note this process is not reversible)
Wait 15 minutes then visit the “Outgoing” tab
Click the “Prove” button and sign the transaction on the destination network
Once 3 days have passed, visit the “Outgoing” tab once more
Click the “Finish” button and sign the transaction on the destination network
Your assets are now withdrawn from K2

General FAQ

Is there a Karak token?

Karak does not currently have a token - anyone else posing as the Karak project is phishing and spam. Always confirm information with official channels first.

What assets does Karak currently support restaking for?

Ethereum Mainnet

Liquid Staking
- Lido (wstETH)
- Rocket Pool (rETH)
- Mantle (mETH)
- Binance (wBETH)
- Coinbase (cbETH)
- Swell (swETH)
- Stader (ETHx)
Liquid Restaking
- Etherfi (weETH)
- Swell (rswETH)
- Kelp (rsETH)
- Renzo (ezETH)
- Puffer (pufETH)
Stablecoins
- USDC
- USDT
- sDAI

Arbitrum

Liquid Staking
- Lido (wstETH)
Liquid Restaking
- Etherfi (weETH)
- Renzo (ezETH)
Stablecoins
- USDC
- USDT

Liquid Restaking
- Swell (rswETH)
Stablecoins
- USDC
Other
- Ethereum (ETH)

What networks does Karak currently support restaking on?

Ethereum Mainnet
Arbitrum L2
K2 L2

XP FAQ

What is the Karak XP Program?

Karak XP Program is a special program where users can earn Karak XP in exchange for restaking assets and referring others to restake assets on Karak.

How do I earn XP?

Restaking assets on Karak: the sooner you restake assets and the longer your assets remain restaked, the more XP you will get.
Referring others to Karak: refer as many people as possible with your invite code for more XP.

What are other ways to potentially earn XP?

Participating in the discord (activity/roles), writing content, memes, and more.
We may be rolling out additional bonus programs for others to earn XP soon.

Does the rate of XP change?

The rate of XP is subject to change every week.

What about old ticket holders?

Old ticket holders will receive XP at the end of the XP Program but should participate in the XP Program to further their rewards.

How do referrals work?

Use the invite codes found at the top right corner of the home page to refer others.
You get a 10% XP from the amount of XP your referral accumulates on Karak.
This is computed on a daily basis.

Where can I get an invite code?

Search for it, there are many avenues to get one. Start with checking official announcements.

Blockchain
Bitcoin
Cryptocurrencies

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