EOL Candidate Proposal: Karak Network
Introduction
Karak is a universal restaking layer that allows stakers, developers, and operators to benefit from increased rewards, seamless operations, and multi-asset restaking.
By allowing protocols to access stable and secure trust networks immediately, Karak lowers the bar for securing new protocols. Additionally, Karak does away with the need for protocols to use a highly dilutive reward system to incentivize their validator sets. This makes bootstrapping security more scalable, accessible, and economical.
About Karak
dApp: https://app.karak.network/
Karak Landing: https://karak.network/
Documentation: https://docs.karak.network/
Twitter: x.com
Karak Value Proposition
With the large growth of the restaking ecosystem, Karak has helped spearhead the growth of multiasset restaking, restaking across multiple chains, and a plug-and-play development experience. These features help Karak lead multi-chain restaking through the use of Distributed Secure Services (DSS), which can accept a multitude of assets for restaking use.
Karak Network boasts $1Bn in TVL (Source: DefiLlama) across four networks and continues to expand. Its strong market position serves as an example of the network’s addressability and the strength of the LRT space.
By being the first LRT network to accept stablecoins such as sUSDe and USDe and accumulating over $78M of stablecoin TVL, Karak has proven its ability to innovate and execute. Karak benefits from having over 100,000 unique users with varying amounts of TVL, proving decentralization (Dune).
Audit History
Pashow Audit Group and Renascene Labs audited our smart contracts. In the Renascence Labs audit, no critical issues were found. The audit uncovered 4 low-impact issues and 7 informational issues. In the Pashow Audit Group audit, no critical issues were found. This audit found 2 medium-impact and 3 low-impact issues.
The Karak team resolved all issues and implemented recommendations.
Detailed reports:
Investors/Fundraising
Karak raised a Series A round of $48M, announced on December 23rd, 2023. The fundraising round was led by Lightspeed Ventures with participation from other investors including Mubadala Capital as well as previous participants like Pantera Capital, Framework Ventures, Bain Capital Ventures, and Digital Currency Group.
Synergy
EOL can restake weETH into Karak and enjoy an exclusive boost in XP earnings. This arrangement provides additional yield to EOL while securing more predictable and sustainable liquidity for Karak. In the long term, Karak can continue to benefit from EOL as it expands its asset offerings. By beginning to work with Mitosis now, Karak gets a head start in solidifying its position with positive engagement with the still nascent Mitosis/EOL governance.
Karak provides EOL access and exposure to restaking across L1s, L2s, sidechains, and other future networks. The architecture helps to achieve an easy-to-integrate developer experience, which is beneficial for the network’s long-term growth.
If EOL integrates other assets in the future, including stablecoins, Karak can strategically continue to benefit from EOL’s expansion. This will help propel the growth of newly supported assets. Additionally, the low-risk nature of utilizing a restaking platform allows for safer engagement compared to other types of protocols.
Conclusion
Both Karak and Mitosis are fundamentally aligned in their focus on supporting the future of multi-chain assets. Engaging in EOL provision helps to provide a low-risk source of yield for the EOL LPs of Mitosis while supporting the growth and stability of Karak liquidity. A Karak and Mitosis alliance helps to balance the support of the multi-chain restaking ecosystem and the growth of EOL. Karak can differentiate itself through its multi-chain focus, multi-asset support, and ability for day-one network support. Karak and Mitosis invest in the future of two strong protocols in this move.
