OAK Network: Trustless automation for higher DeFi efficiency

What is OAK Network?

OAK (On-chain Autonomous Kernel) Network is a layer one for on-chain payment automation. OAK is basically a framework for building automation services that provide out-of-box functionalities for other blockchains such as recurring payment, auto compounding, dollar cost averaging or stop-loss enabled trades.

OAK Network dashboard

Three basic concepts of OAK

  • non-custodial — all the executions are done directly from users’ wallets
  • triggers — defining the executions for previously stated data streams, which can be related to date/time or any other conditions
  • actions — asset transfers, automated reward restaking and other functionalities utilized on other parachains by leveraging the XCMP

Real use cases in DeFi

OAK enables quite a lot of functionalities that are not available today for most of the DeFi projects (and especially not without some sort of custodian). Let’s have a look at the most important ones.

Event-driven model by OAK Network

Event-driven transactions

Execution of transactions related to any specific event (like when the exact time occurs or an asset reaches a certain price)

  • in a specific date and time (Alice send 100 DOT to Bob on Monday at 8 am),
  • meeting the price conditions (Alice sends 50 KSM to Bob when the price of KSM reaches 200 USD), or
  • any other measurable conditions approved by an oracle (Alice sends 1000 aUSD to Bob when the weather in Prague reaches 30°C)
Schedule task on OAK

Repeated payments

It’s not a big deal to manually execute a one-time transaction. But once the number of repeated transactions exceeds some amount, you rather prefer to automatize that.

Automatic payment in OAK
Dashboard of scheduled tasks in OAK

Auto compounding

Automated reward restaking is the most effective way to earn compound interest on your staked asset. It’s a really nice example of when automation comes in handy because otherwise, you would have to claim rewards and stake them every now and then.

Dollar-cost averaging (DCA)

DCA is the most effective way how to invest in any asset including cryptocurrencies. It avoids the emotions of traders and the endless quest to buy the dip. In other words, it's just another automation process that can be done by OAK and its services.

Stop-loss trades

Decentralized swaps in AMM-style DEXes are quite a decent way how to trade your cryptocurrencies without a middleman. But not applicable, when you want to trade in a more efficient way using order books and limit orders. One level beyond spot order trading is using stop-loss trades, which helps users to minimalize their losses or utilize various different trading strategies.

Key characteristics of OAK

The key characteristics that give OAK Network an edge are

  • no wrapped asset: assets are supported by the chain and no longer need to tie up with one smart contract
  • one-to-many distribution: OAKs virtual machine supports the capability of sending to multiple addresses with one transaction
  • off-chain servers elimination: repetitive transactions can be triggered by the on-chain event module
  • no private key custody: set up once, the transaction can then be triggered on-chain effortlessly
  • chain-level security: compared to EVM smart contracts, many core utility functions are secured by the network itself
  • native upgradability: based on Substrate, OAK Network will constantly evolve with on-chain runtime upgrade
  • on-chain governance: similar to Polkadot, Kusama, and most parachains, OAK and Turing are both driven by on-chain governance, where the token holders make decisions in referenda and proposals

Tokens

OAK Network has its own native token OAK with a total supply 1 000 000 000 and fixed inflation of 5%. 3% of the token supply is an allocation as the future parachain reserve to get another slot without a crowdloan event.

Initial OAK token distribution, source
  • network transaction fees
  • automation fees to prioritize tasks
  • collator staking which makes the network stable
  • on-chain governance for democratically determining further network direction
  • community DAO resources to build and experiment
  • developer incentives in form of grants and bounties, which accelerate dApps progression

Canary network — Turing

Turing Network is the canary network of OAK. It already has its own parachain slot after winning the 30th parachain auction on Kusama. Turing has its own native token TUR, so think of Turing as a kind of testing space with real value. TUR has also a total supply of 1 000 000 000 tokens with 5% inflation, such as the OAK token.

Mangata X: TUR swap with MGX

OAK Network crowdloan for Polkadot slot

OAK Network crowdloan for the Polkadot network went live on September 20th, targeting the 28th auction. Contributors will receive up to 1.5% of the OAK tokens from an initial supply of 1 billion at a ratio of up to 100 OAK per 1 DOT contributed.

OAK Network fiat-onramp widget on the crowdloan page

Summary

OAK Network is an automation hub for DeFi-related blockchains built on Substrate with a first-of-its-kind event-driven execution model. With its usage, transactions are triggered by event signals such as time, price, and smart-contract state changes. This pushes the capabilities of the whole DeFi space even further up and also adds new functionalities that haven’t been available before.

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Polkadotters | Kusama & Polkadot validators

Polkadotters | Kusama & Polkadot validators

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Czech bloggers & community builders. We are validators of Polkadot, Kusama, Darwinia, Crab, Bifrost, HydraDX, StaFi, Centrifuge under the name: POLKADOTTERS