Restaking Protocol Risks: EigenLayer vs. Karak
EigenLayer dominates restaking ($16B TVL) but faces:

AVS (Actively Validated Services) Saturation: Only 15 live AVSs vs. $16B restaked ETH → yield dilution risk

Slashing Threats: Correlated failures could cascade (e.g., AltLayer + EigenDA downtime)

Karak’s Differentiation:

No Native Token: Uses ETH/stETH directly (vs. EigenLayer’s points system)

Insurance Backstop: Partners with Nexus Mutual for slashing coverage

Verdict: EigenLayer has first-mover advantage; Karak appeals to risk-averse stakers.