Tenet Integrates LayerZero for DeFi Expansion

Layer-1 blockchain technology Tenet’s liquid staking derivatives platform will be integrated into a cross-chain decentralized finance (DeFi) ecosystem via a collaboration with the omnichain messaging protocol LayerZero.

Tenet has integrated LayerZero’s cross-chain protocol to gain access to the broader DeFi ecosystem across multiple blockchains.

The Cosmos-based blockchain is an ecosystem focused on DeFi that offers liquidity and yield products for liquid staking derivatives (LSD).

LSDs have been a central component of the DeFi ecosystem for a considerable time.

Ethereum liquid staking pools such as Lido, which allow users to stake and unstake ETH seamlessly, have led to the staking of massive amounts of capital for lucrative returns.

LayerZero technology will be integrated into the Tenet network, which enables users to create projects and tokens.

Interoperability enables access to the DeFi ecosystem across multiple intelligent contract blockchains.

Tenet’s DeFi blockchain operates using its proof-of-stake consensus framework, with its native stablecoin backed by a basket of interest-bearing LSDs from multiple blockchains.

It is believed that staking a collection of blockchain-based assets eliminates the risk of network attacks by major token holders.

Tenet allocated its initial network security stake to ETH, ATOM, BNB, MATIC, ADA, and DOT.

Gregory Gopman, chief executive officer of Tenet, stated that LSDs continue to be a popular DeFi solution that increases the potential to profit from staked assets:

“They allow you to maximize opportunities, by leveraging on the liquidity of staked assets. LSDs will essentially allow PoS native tokens to maximize their earnings potential.”

Gopman also emphasized the significance of LayerZero’s infrastructure as a critical component of DeFi’s future.

“The technology they’ve built is a generation ahead of bridging and avoids some of the key exploits we’ve seen bridges succumb to.”

The DeFi ecosystem has been subject to its fair share of exploits over the past year.

Over $2 billion was stolen from the DeFi ecosystem via cross-chain bridge attacks, with the infamous Axie Infinity Ronin bridge hack accounting for a significant portion of that amount.

Tenet will also launch a LayerZero-powered bridge to make their omnichain LSDs compatible with the 27 blockchains supported by LayerZero’s network.