Former executives from Ankr and Blockdaemon have collaborated to create Tenet, the first Layer 1 blockchain focused on Liquid Staking Derivatives (LSDs). Tenet aims to provide additional liquidity and yield opportunities through its Ethereum Virtual Machine (EVM) compatible Layer 1 protocol. The blockchain utilizes a unique mechanism called Diversified Proof of Stake (DiPoS) to ensure long-term security by re-staking LSDs from other supported L1 ecosystems. The Tenet Testnet has been launched, allowing developers to explore and interact with the platform.

Tenet Protocol Features

Tenet is designed to enable users to re-stake their assets and participate in the network’s DeFi ecosystem. Unlike other Cosmos chains that rely on their native tokens for PoS security, Tenet validators leverage DiPoS by re-staking LSDs from other supported L1 ecosystems, such as Ethereum, BNB Chain, Cosmos, Solana, and Polygon. This approach enhances the security of the Tenet chain by leveraging the joint security of each ecosystem it services.

Tenet’s co-founder, Greg Gopman, stated that Tenet was created to provide a simpler and more secure staking and LSD experience for users. The platform aims to tap into the untapped liquidity of almost $20 billion.

Using LSDs on Tenet

Re-staked LSDs on Tenet can be used to access DeFi opportunities on the Testnet ecosystem, including lending pools, DEXs, and the ability to mint the Universal Stablecoin interest-free. Additionally, Tenet offers native gauges, allowing veTenet token holders to earn direct rewards in the selected pools.

Tenet Testnet Launch FAQ

What is Tenet?

Tenet is the first Layer 1 blockchain designed to create a hub for Liquid Staking Derivatives (LSDs). It offers additional liquidity and yield opportunities by allowing users to re-stake their assets and participate in the network’s DeFi ecosystem.

What is the Tenet Testnet?

The Tenet Testnet is a platform that allows developers to interact and experiment with the Tenet blockchain. It provides an opportunity to explore the platform’s features and functionalities before the mainnet launch.

How does Tenet ensure long-term security?

Tenet utilizes a unique mechanism called Diversified Proof of Stake (DiPoS). DiPoS enables validators to re-stake LSDs from other L1 ecosystems supported by Tenet, such as Ethereum, BNB Chain, Cosmos, Solana, and Polygon. By leveraging the joint security of each ecosystem, Tenet enhances the long-term security of its chain.

What can users do with LSDs on Tenet?

Users can use re-staked LSDs on Tenet to access DeFi opportunities on the Testnet ecosystem. This includes participating in lending pools, trading on decentralized exchanges, and minting the Universal Stablecoin interest-free. Tenet also offers native gauges, allowing veTenet token holders to earn direct rewards.

Sources: CoinJournal