Supercharging Maker Endgame With Karak Restaking
We’re excited to expand universal restaking for any asset, introducing native staking functionality for MKR and a long-term focus on NewGovToken. This initiative aims to supercharge the Maker Endgame with Karak Restaking and lay the groundwork for how the Maker ecosystem can help serve as a bedrock for Karak’s universal restaking.
Karak pioneered the concept of universal restaking, a universal security layer that enables protocols and networks to easily decentralize on any chain and with any asset. Today, we are accelerating this vision by building on Maker to bring the benefits of universal restaking to MKR and NewGovToken, unlocking significant utility and rewards for the Maker community.
MKR and NewGovToken universal security not only provides utility and rewards for stakers, but may prove to be an attractive asset that developers building Distributed Secure Services (DSS) on Karak can utilize to secure, scale, and decentralize their networks. For context, a Distributed Secure Service (DSS) is a decentralized service built on Karak, leveraging restaked assets such as MKR or NewGovToken as universal security for the services it provides. The DSS framework is inherently flexible, extensible, and scalable, making it suitable for everything from basic utilities, like calculators, to sophisticated networks, such as DA marketplaces and Interoperability platforms.
Phase 1: Restaking for MKR
Karak is launching native staking functionality for MKR, enabling MKR holders to deposit their MKR tokens into Karak and earn Karak XP today. Very soon, MKR staked on Karak will be used to secure and decentralize a wide range of DSSs, allowing holders to earn additional rewards on their MKR tokens. This unique concept allows MKR holders to leverage an external consensus mechanism bootstrapped by Karak to earn restaking rewards on their MKR tokens.
Phase 2: Endgame Restaking for NewGovToken Activation
As mentioned in Rune’s post on Maker’s governance forum here, Activation is a new feature that will be available to NewGovToken holders. It is designed to incentivize governance participation in the long term among NewGovToken holders who do not wish to lock up their tokens long-term with Sealed Activation (formerly LockStaking). To maximize rewards and utility for the Maker community, Karak will be building restaking for NewGovToken Activation which will also help power, secure, and decentralize novel DSSs built on Karak. Restaking for Activated NewGovTokens will also be a powerful primitive that allows Karak to stack rewards for the Maker community where they can earn Restaking rewards on top of the native Activation rewards together.
Automatic upgrade from MKR to NewGovToken
Karak is building MKR restaking in a flexible, scalable, and modular approach that automatically upgrades MKR to NewGovToken when NewGovToken launches. This makes Karak the only place where you don’t miss out on the MKR to NewGovToken upgrade while continuing to earn rewards in the meantime.
Looking Ahead
Karak’s architecture is inherently flexible, extensible, and scalable which can elastically extend universal security for new assets and networks seamlessly. One use case that Karak has already integrated and focused on growing is stablecoin restaking. Today, Karak already supports restaking with DAI which has seen burgeoning growth since launch, and thus, will be exploring building restaking support for NewStable as well. Similar to the automatic upgrade mechanism for MKR to NewGovToken, Karak could build a similar mechanism for DAI to NewStable.
In summary, Karak’s universal security functionalities for MKR and NewGovToken provide substantial benefits to Maker Endgame, driving unparalleled utility, rewards, and security for the broader Maker community.
About Karak
Karak is the universal, verifiable cloud platform that makes it easy to provide universal security with any asset on any network, and unlocks a new design space for developers to seamlessly and securely create innovative distributed networks. Karak is designed to be inherently flexible, extensible, and scalable, making it the only platform for any distributed service to be secured with any asset on any network.
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