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.

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.

We will continue to update Phone&Auto; if you have any questions or suggestions, please contact us!


Was this article helpful?

93 out of 132 found this helpful

Discover more


Lido’s Wrapped Staked Ether (wstETH) Arrives on Coinbase’s Base Network: It’s Party Time!

Beefy Finance successfully launched a version of Lido's wstETH token for the base network, receiving official approva...


Wu's VC Monthly Report Number and Amount of Financing in October Hit a New Low in 2021

Author | Wu Talks about Blockchain According to RootData statistics, there were a total of 75 public investment proje...


Avantis: Balancing Crypto Futures Markets for Retail Traders

During its recent two-month testnet run, Avantis reported a significant trading volume of over $5 billion from 50,000...


SEC Chair Gary Gensler sees potential in using AI to enhance enforcement efforts.

SEC Chair Gary Gensler is optimistic about the potential of AI to enhance market surveillance operations and effectiv...


SatoshiVM token dips 38% due to Ape Terminal controversy on X.

There has been a disagreement between the executives of SatoshiVM and the Ape Terminal regarding the successful IDO t...