Layer-1 blockchain Tenet is set to see its liquid staking derivatives platfrom plug into the cross-chain decentralized finance (DeFi) ecosystem by partnering with omnichain messaging protocol LayerZero.
Tenet plugs into LayerZero’s cross-chain protocol to access the broader DeFi ecosystem across many different blockchains. The Cosmos-based blockchain is a DeFi-focused ecosystem that 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 such as Lido that allow users to stake and unstake ETH seamlessly leading to large amounts of capital being staked for large income.
Tenet’s network allows users to create projects and tokens that will now be integrated with LayerZero’s technology. Interoperability opens up users to a wider DeFi ecosystem of different smart contract blockchains.
Tenet’s DeFi blockchain operates using its own diverse 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 preferred to remove the risk of network attacks on major token holders. Tenet’s genesis stake in its network security is allocated to ETH, ATOM, BNB, MATIC, ADA, and DOT.
Tenet CEO Gregory Goodman told Cointelegraph that LSDs remain a popular DeFi solution that expands the ability to profit from staked assets:
“They allow you to maximize opportunities, by leveraging the liquidity of staked assets. LSDs allow native PoS tokens to maximize their revenue potential.
Goodman also highlighted the importance of LayerZero’s infrastructure to be a key component of DeFi’s future.
“The technology they’re building is a generation ahead of connectivity and avoids some of the key exploits that we’ve seen bridges fail.”
The DeFi ecosystem has seen its fair share of exploits over the past 12 months. Cross-chain bridge attacks have seen over $2 billion stolen from the DeFi ecosystem, with the infamous Axie Infinity Ronin bridge hack accounting for a large chunk of that figure.
Tenet is also set to launch a bridge with LayerZero to make their omnichain LSDs interoperable with the 27 different blockchains the network supports later.
