Tenet and LayerZero team up to boost cross-chain liquid staking for DeFi
The layer-1 blockchain called Tenet is about to integrate its liquid staking derivatives platform with a cross-chain decentralized finance (DeFi) ecosystem through a partnership with omnichain messaging protocol LayerZero.
Tenet has connected to LayerZero’s cross-chain protocol to gain access to the wider DeFi ecosystem across multiple blockchains. This blockchain, based on Cosmos, is a DeFi-focused ecosystem that offers liquidity and yield products for liquid staking derivatives (LSDs).
LSDs have been an integral part of the DeFi ecosystem for some time. A prime example is Ethereum (ETH) liquid staking pools like Lido, which allow users to stake and unstake ETH seamlessly, leading to massive amounts of capital being staked for lucrative yields.
Tenet’s network enables users to create projects and tokens that will now be integrated with LayerZero technology. This interoperability opens users up to the broader DeFi ecosystem across a variety of smart contract blockchains.
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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 said 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.
The CEO of Tenet, 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 emphasized the importance of LayerZero’s infrastructure in becoming a key component of 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 experienced its fair share of exploits over the past 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 portion of that amount.
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.