thenewscrypto.com
Tenet, a layer-1 ecosystem that is working to broaden the applications of liquid staking derivatives (LSD), has formed a strategic alliance with LayerZero, a top omnichain interoperability protocol that is now valued at over $3 billion.
As a result of the cooperation, the LayerZero omnichain architecture will be used by Tenet, a blockchain developed using the Cosmos SDK, to secure connections with the rest of the blockchain ecosystem and facilitate the flow of funds to and from Tenet.
In order to link Tenet to the wide range of alternative networks powered by the LayerZero protocol, the initial phase of the cooperation is putting up a LayerZero endpoint on Tenet. This enables anybody to develop projects and tokens supported by LayerZero technology. On the Tenet network, the integration is already operational.
The latter phases of the partnership will feature Tenet’s LSDs, which LayerZero enables to become real omnichain tokens. Tenet is a network that uses the Diversified Proof-of-Stake (DiPoS) consensus paradigm to increase the usefulness of LSDs from other chains. Tenet is now able to use LSDs as the staking asset thanks to this technology, greatly enhancing the network’s overall security.
In addition, Tenet is creating a bridge that will use LayerZero technology to enable the bridging of these omnichain LSDs across any chains in the LayerZero network. The teams will also collaborate to introduce this technology to fresh chains connected to Tenet’s network of staked LSDs.
The omnichain Tenet LSDs will be transferable, useable, and redeemable on any of the LayerZero-supported networks, making the cross-chain liquid staking process simple and secure.
The Tenet network is mainly focused on developing a thriving decentralized financial (DeFi) ecosystem for the LSDs, which up to now has been a gap in many comparable efforts. The yield from the user’s initial asset, the yield from staking to Tenet, and the income from Tenet DeFi protocol activities like lending and DEXs may all be combined into one using Tenet.
“The partnership with LayerZero is critical for Tenet’s success, as our protocol is cross-chain native at its core,” said Greg Gopman, co-founder of Tenet. “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.”
With the help of Conflux and Qtum’s recent development into the Asian market, Tenet has established several significant relationships with significant layer-1 chains. The collaboration between Tenet and LayerZero represents a major advance for the LSD-focused DeFi ecosystem.