Tenet and LayerZero have formed a strategic partnership aimed at promoting the use of liquid staking derivatives (LSDs) through a layer-1 ecosystem. LayerZero, which is currently valued at over $3 billion and specializes in omnichain interoperability protocols, will make its omnichain architecture available to Tenet, a blockchain developed with Cosmos SDK. The collaboration will facilitate connections between the Tenet blockchain and other networks, enabling the free flow of funds back and forth. To establish a connection to the LayerZero protocol, a LayerZero endpoint will be available on Tenet during the initial stage of the partnership.
LayerZero is now live on @tenet_org mainnet! pic.twitter.com/kIdXC0RD7D
— LayerZero Labs (@LayerZero_Labs) May 30, 2023
The team is confident that interoperable Tenet LSDs, or liquid staking derivatives, will revolutionize the staking of assets across multiple chains. Using Diversified Proof-of-Stake (DiPoS) technology, Tenet can now use LSDs as a staking asset, resulting in improved network security.
In addition, Tenet’s bridge, which is being developed using LayerZero technology, will enable omnichain LSDs to be bridged across all chains on the LayerZero network. The scope of the partnership will also account for connecting new chains to the Tenet staked LSD network.
Tenet aims to create a thriving decentralized financial (DeFi) ecosystem for LSDs to pave the way for decentralized staking derivatives. By bringing together the user’s initial asset, staking yield, and Tenet DeFi protocol operations like lending and DEXs, Tenet is poised to become the go-to option for all DeFi-related activities. Greg Gopman, Tenet co-founder, said, “The partnership with LayerZero is crucial for Tenet’s success as our protocol is cross-chain native at its core.”
Tenet has established numerous partnerships with significant layer-1 chains through Conflux and Qtum’s recent expansion into the Asian market. The partnership with LayerZero is a significant step forward in the development of the LSD-focused DeFi ecosystem.
Compiled by Coinbold
