Bitget App
Trade smarter
Buy cryptoMarketsTradeFuturesEarnWeb3SquareMore
Trade
Spot
Buy and sell crypto with ease
Margin
Amplify your capital and maximize fund efficiency
Onchain
Going Onchain, without going Onchain!
Convert & block trade
Convert crypto with one click and zero fees
Explore
Launchhub
Gain the edge early and start winning
Copy
Copy elite trader with one click
Bots
Simple, fast, and reliable AI trading bot
Trade
USDT-M Futures
Futures settled in USDT
USDC-M Futures
Futures settled in USDC
Coin-M Futures
Futures settled in cryptocurrencies
Explore
Futures guide
A beginner-to-advanced journey in futures trading
Futures promotions
Generous rewards await
Overview
A variety of products to grow your assets
Simple Earn
Deposit and withdraw anytime to earn flexible returns with zero risk
On-chain Earn
Earn profits daily without risking principal
Structured Earn
Robust financial innovation to navigate market swings
VIP and Wealth Management
Premium services for smart wealth management
Loans
Flexible borrowing with high fund security
Karak wants to introduce ‘universal restaking’ for everyone

Karak wants to introduce ‘universal restaking’ for everyone

BlockworksBlockworks2024/04/08 19:55
By:Blockworks

Users using Karak will be able to restake any asset on any chain, Karak founders explain

A universal restaking layer designed by the Andalusia Labs team has emerged from stealth to launch its mainnet today. Karak is a risk management layer-2 blockchain solution that simplifies the process of providing economic security through restaking. 

The company is based in San Francisco and Abu Dhabi. It previously raised $50 million at a $1 billion valuation from investors including Coinbase, Mubadala — an Abu Dhabi Sovereign Wealth Fund — Lightspeed, Bain Capital, Pantera Capital, Framework Ventures and others. 

Raouf Ben-Har, the co-founder of Karak, told Blockworks that Karak was created to solve the problem of fragmented crypto-economic security in the space, which was preventing startups from finding initial success with their projects. 

Read more: QA: What will the Bitcoin halving mean for Bitcoin L2s?

“They were struggling to bootstrap their own economic security and suffered from highly dilutive reward mechanisms, which was unfortunate, especially for critical infrastructure like bridges, oracles and other infrastructure layers,” Ben-Har said.

For this reason, Ben-Har and his co-founder Drew Patel decided to create a universal layer of trust applicable across any software. This would enable developers to bypass the need to start from scratch and avoid being confined exclusively to Ethereum for security measures.

“We envisioned Karak as the key to unlocking this new era of innovation. Similar to how AWS made it easy and affordable for developers to access and build on the cloud, we wanted to make it easy and affordable for developers to access and build on any trust network,” he said.

Read more: Nirvana Cloud debuts as blockchain-optimized alternative to AWS and Google Cloud

According to Patel, there are similarities between EigenLayer and Karak, in the sense that both teams are building a staking protocol that enables other projects to access economic security to infrastructure layers.

“Similar to EigenLayer, Karak has its own version of AVSs dubbed Validation-as-a-Service, or VaaS,” Patel said. “However, unlike EigenLayer, which enshrines itself solely on Ethereum, Karak introduces this idea of universal security, or restaking for everyone, where anyone can provide crypto-economics with any asset on any chain.”

Ben-Har remarks that the security of a restaked protocol is often measured by the dollars that underlie its economic security. With Karak, this means that these dollars can be provided by assets beyond ETH without compromising security. 

“Many assets have lower opportunity costs versus ETH, meaning the [VaaS] has an easier and much more viable path to sustainable yields,” Ben-Har said. 

Read more: Restaking is a ticking time bomb

Ben-Har explains that in an ETH-only environment, the AVS would have to compete against every ETH yield opportunity with a new, novel risk profile — something that is not sustainable without airdrop speculation. 

“There are billions of untapped assets, like stTIA, ARB, and many others, with very few yield opportunities to create sustainable flywheels for VaaS building in their ecosystem,” he said. “Each ecosystem is different and has its own unique protocols that will create different VaaSs designed on top of their assets. There is no one-size-fits-all for every chain.”

The team notes that they are currently experimenting with different ways to use the xERC20 standard and various message bridges to reduce liquidity fragmentation across liquid restaked tokens. They hope that this will allow them to create a universal liquidity layer across chains to alleviate supply-demand mismatches.

Don’t miss the next big story – join our  free daily newsletter .

Tags
  • layer-2
  • staking
0

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

PoolX: Earn new token airdrops
Lock your assets and earn 10%+ APR
Lock now!

You may also like

CandyBomb x BLESS: Trade to share 4,300,000 BLESS!

Bitget Announcement2025/09/24 07:30

CandyBomb x RIVER: Trade to share 127,000 RIVER!

Bitget Announcement2025/09/24 07:30

Bitget Spot Cross Margin adds AVNT/USDT、SOMI/USDT

Bitget Announcement2025/09/24 03:27

New spot margin trading pair — 0G/USDT!

Bitget Announcement2025/09/23 10:18