Tenet, LayerZero partner to drive cross-chain liquid staking adoption
Layer-1 blockchain Tenet is set to see its liquid staking derivatives platfrom plug into a cross-chain decentralized finance (DeFi) ecosystem through a partnership with omnichain messaging protocol LayerZero.
Tenet has plugged into LayerZero’s cross-chain protocol to access the wider DeFi ecosystem across a number of different blockchains. The Cosmos-based blockchain is a DeFi-focused ecosystem which provides liquidity and yield products for liquid staking derivatives (LSDs).
LSDs have been a central cog in the DeFi ecosystem for some time. A prime example is Ethereum (ETH) liquid staking pools like Lido allowing users to stake and unstake ETH seamlessly leading to massive amounts of capital being staked for lucrative yields.
Tenet’s network allows users to create projects and tokens which will now be integrated with LayerZero technology. The interoperability opens up users to the broader DeFi ecosystem across a variety of smart contract blockchains.
Tenet’s DeFi blockchain operates using its own diversified proof of stake consensus framework, with its native stablecoin backed by a basket of interest-bearing LSDs from various blockchains.
Staking a basket of blockchain-based assets is touted to remove the risk of network attacks by major token holders. Tenet’s genesis stake of its network security was allocated to ETH, ATOM, BNB, MATIC, ADA, and DOT.
Tenet CEO Gregory Goodman told Cointelegraph that LSDs remain a popular DeFi solution that extends the ability to profit from staked assets:
“They allow you to maximize opportunities, by leveraging on the liquidity of staked assets. LSDs will essentially allow PoS native tokens to maximize their earnings potential.”
Goodman also highlighted the importance of LayerZero’s infrastructure in becoming a key component to the future of DeFi.
“The technology they’ve built is a generation ahead of bridging and avoids some of the key exploits we’ve seen bridges succumb to.”
The DeFi ecosystem has seen its fair share of exploits over the last 12 months. Cross-chain bridge attacks saw more than $2 billion stolen from the DeFi ecosystem, with the infamous Axie Infinity Ronin bridge hack accounting for a significant amount of that figure.
Tenet is also set to launch a bridge using LayerZero to make their omnichain LSDs interoperable with the 27 different blockchains supported by the latter’s network.