Layer-1 blockchain Tenet is about to see its liquid staking derivatives platfrom plug right into a cross-chain decentralized finance (DeFi) ecosystem by way of a partnership with omnichain messaging protocol LayerZero.
Tenet has plugged into LayerZero’s cross-chain protocol to entry the broader DeFi ecosystem throughout various completely different blockchains. The Cosmos-based blockchain is a DeFi-focused ecosystem which offers liquidity and yield merchandise for liquid staking derivatives (LSDs).
LSDs have been a central cog within the DeFi ecosystem for a while. A first-rate instance is Ethereum (ETH) liquid staking swimming pools like Lido permitting customers to stake and unstake ETH seamlessly resulting in huge quantities of capital being staked for profitable yields.
Tenet’s community permits customers to create tasks and tokens which can now be built-in with LayerZero know-how. The interoperability opens up customers to the broader DeFi ecosystem throughout quite a lot of sensible contract blockchains.
Tenet’s DeFi blockchain operates utilizing its personal diversified proof of stake consensus framework, with its native stablecoin backed by a basket of interest-bearing LSDs from varied blockchains.
Staking a basket of blockchain-based property is touted to take away the chance of community assaults by main token holders. Tenet’s genesis stake of its community safety was allotted to ETH, ATOM, BNB, MATIC, ADA, and DOT.
Tenet CEO Gregory Goodman informed Cointelegraph that LSDs stay a preferred DeFi resolution that extends the flexibility to revenue from staked property:
“They permit you to maximize alternatives, by leveraging on the liquidity of staked property. LSDs will basically enable PoS native tokens to maximise their earnings potential.”
Goodman additionally highlighted the significance of LayerZero’s infrastructure in changing into a key element to the way forward for DeFi.
“The know-how they’ve constructed is a technology forward of bridging and avoids a few of the key exploits we’ve seen bridges succumb to.”
The DeFi ecosystem has seen its justifiable share of exploits over the past 12 months. Cross-chain bridge assaults noticed greater than $2 billion stolen from the DeFi ecosystem, with the notorious Axie Infinity Ronin bridge hack accounting for a big quantity of that determine.
Tenet can be set to launch a bridge utilizing LayerZero to make their omnichain LSDs interoperable with the 27 completely different blockchains supported by the latter’s community.
