What is Karak Network (K)?
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🟢 The simple version
Plain English — no jargon. Start here.
Karak Network is a restaking protocol that goes beyond EigenLayer's ETH-only model — it lets you restake almost any crypto asset (stablecoins, LSTs, BTC wrappers, LP tokens) to earn additional rewards by providing economic security to a new category of services called DSS (Distributed Secure Services).
Restaking beyond ETH
EigenLayer pioneered restaking but focuses on ETH and ETH LSTs as the assets that can be restaked. Karak's key differentiation: it accepts a much broader set of assets for restaking. In Karak, you can restake stablecoins (USDC, USDT), BTC wrappers (wBTC, cbBTC), liquid staking tokens (stETH, rETH), and even LP tokens from DeFi protocols. This dramatically expands who can participate in restaking — you no longer need to hold ETH.
The logic: any asset can be put at risk (slashable) as collateral, and any service that needs decentralised security can pay for it. Karak matches asset depositors with DSS operators who need economic security, and the K token governs the parameters of this marketplace.
DSS — Distributed Secure Services
DSS is Karak's term for the services that receive restaked security — equivalent to EigenLayer's AVS (Actively Validated Services). A DSS could be an oracle network, a bridge, a rollup sequencer, or any off-chain service that needs cryptoeconomic security. DSS operators pay rewards to restakers whose capital is securing their service.
K token
K is the governance token of Karak Network. It governs: which assets are accepted for restaking, DSS onboarding criteria, slashing parameters, and protocol fee settings. K launched in 2024. Total supply and distribution details subject to ongoing governance.
Is K legal in India?
Yes. K qualifies as a Virtual Digital Asset (VDA) under Indian law. A flat 30% tax applies to gains, and 1% TDS applies to qualifying trades on Indian exchanges. Always consult a tax professional.
🟡 A bit more detail
For when you want to go a little deeper.
Karak vs EigenLayer
EigenLayer is larger, more established, and ETH-centric. Karak is newer and asset-agnostic. This creates different user profiles: EigenLayer users are typically ETH stakers wanting to boost their ETH yield. Karak users can be stablecoin holders who want yield without ETH price exposure, BTC holders who want restaking yield on wrapped BTC, or DeFi users who want yield on idle LP positions. The multi-asset approach potentially opens restaking to a much larger capital pool than ETH-only.
Multi-chain architecture
Karak operates across multiple chains — Ethereum, Arbitrum, Mantle, and others — allowing assets native to different chains to participate in restaking without bridging to Ethereum. A stablecoin on Arbitrum can be restaked on Arbitrum; it doesn't need to move to Ethereum first. This reduces bridge risk and gas friction for non-Ethereum native assets.
Multi-asset restaking is less battle-tested than ETH restaking. The slashing logic for stablecoins and LP tokens is more complex than for ETH — how do you slash a stablecoin position? These mechanisms are newer and have had less time under adversarial conditions. Novel = higher risk during early stages. Live data: CoinGecko
🟣 The full technical picture
For the technically curious.
Key facts
- Token: K (governance)
- Category: Multi-asset restaking protocol
- Accepted assets: ETH LSTs, stablecoins (USDC/USDT), wBTC/cbBTC, LP tokens, and more
- Services secured: DSS (Distributed Secure Services) — oracles, bridges, rollups
- vs EigenLayer: Accepts non-ETH assets; multi-chain; broader depositor base
- Chains: Ethereum, Arbitrum, Mantle (multi-chain)
- Backing: Lightspeed Venture Partners, Coinbase Ventures, others; raised ~$48M
- Key risk: Novel slashing logic for non-ETH assets; less audited than EigenLayer
DSS architecture and slashing
Each DSS deployed on Karak defines its own slashing conditions — the specific misbehaviours that would cause restaked capital to be penalised. Karak provides a standardised interface for DSS operators to register slashing logic on-chain. When a slashing event is triggered by a DSS, it goes through Karak's slashing resolution mechanism (with time delays and challenge periods) before capital is actually seized — providing restakers with some protection against accidental or malicious false slashing claims. The challenge period is a key safety feature that EigenLayer also implements in its slashing design.