Tenet partners with LayerZero to boost Omnichain adoption of LSDs
- Tenet is a layer-1 ecosystem focused on expanding use cases of liquid staking derivatives (LSD).
- LayerZero is a leading omnichain interoperability protocol currently valued at more than $3 billion
- The partnership will help Tenet secure connections with the rest of the blockchain ecosystem.
Tenet has secured a far-reaching partnership with LayerZero as it seeks to leverage the LayerZero Omnichain framework to secure connections with the rest of the blockchain ecosystem. This will make it easy to transfer liquidity to and from Tenet, a blockchain built on Cosmos SDK.
The Tenet network is mainly focused on creating a vibrant decentralized finance (DeFi) ecosystem for the LSDs, which so far has been a missing link in many similar initiatives. Tenet users can combine up to three different sources of yield in one, including their original asset’s yield, the yield of staking to Tenet, and the yield from the Tenet DeFi protocol.
Enabling more utility for LSDsCopy link to section
Tenet is dedicated to enabling more utility for LSDs from other chains, using a unique consensus model called Diversified Proof-of-Stake (DiPoS). With this technology, Tenet allows people to use LSDs as the staking asset, which dramatically increases the overall security of the Tenet network.
Commenting about the development, the co-founder of Tenet, Greg Gopman, said:
“The partnership with LayerZero is critical for Tenet’s success, as our protocol is cross-chain native at its core. While the initial integration is helpful in connecting our chain to the large LayerZero network to leverage its cross-chain liquidity, it also enables us to create truly omnichain LSDs for any asset. This reduces the barriers of entry and sets us up as the leading LSD ecosystem for all of DeFi.”
The partnership will be implemented in two stagesCopy link to section
The first stage of the partnership involves setting up a LayerZero endpoint on Tenet to allow anyone to create projects and tokens backed by LayerZero technology. This will connect Tenet to the vast array of other networks powered by the protocol.
The LayerZero integration is already live on the Tenet network.
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The next stages will involve Tenet’s LSDs will then be able to become true Omnichain tokens thanks to LayerZero.
In addition to the two implementation stages, Tenet will also launch a bridge powered by LayerZero technology to allow the Omnichain LSDs to be bridged between any blockchain within the LayerZero network. The teams from the two startups will also work together to bring this technology to other chains integrated within the Tenet network.
Once the LayerZero is fully integrated into Tenet, Omnichain Tenet LSDs will be transferable, usable and redeemable in any of the networks supported by LayerZero, making the experience of cross-chain liquid staking seamless and secure.