Tenet partners with LayerZero to boost omnichain LSD usage

Tenet is a blockchain network built on the Cosmos SDK that operates at the layer-1 level. Recently, it has formed a groundbreaking partnership with LayerZero, an Omnichain interoperability protocol. According to a press release shared with Coinspeaker, the partnership is worth over $3 billion and focuses on developing the use cases of Liquid Staking Derivatives (LSD).

The partnership offers several advantages, including the ease with which liquidity can be transferred to and from Tenet. Users can now move their assets between different chains without having to navigate complex and time-consuming processes.

LayerZero’s Omnichain framework streamlines and simplifies liquidity transfers, empowering users to take full control of their assets and engage in a broader range of DeFi activities.

Moreover, the collaboration between Tenet and LayerZero goes beyond interoperability and liquidity transfers. As part of the partnership, Tenet has launched a bridge powered by LayerZero technology. This bridge enables the seamless bridging of Omnichain LSDs between any chain in the LayerZero network, unlocking a multitude of opportunities for liquidity utilization and investment strategies.

Greg Gopman, Co-founder of Tenet, emphasized that the partnership with LayerZero is critical for Tenet’s success. He believes that the integration will enable Tenet to create truly omnichain LSDs for any asset, reducing the barriers of entry and setting them up as the leading LSD ecosystem for all of DeFi.

Different Stages of the Tenet and Omnichain Integration

The integration between Tenet and LayerZero has different stages. The first stage is already live on the Tenet network, opening up new possibilities for collaboration and expansion. A LayerZero endpoint has been established on the Tenet network, enabling users to create projects and tokens backed by LayerZero technology and connect seamlessly between Tenet and the diverse array of networks powered by the LayerZero protocol.

The second phase of integration will extend to Tenet’s LSDs. Tenet’s distinct consensus mechanism, Diversified Proof-of-Stake (DiPoS), is critical to the integration of LSDs with LayerZero. DiPoS enables LSDs to be utilized as staking assets within the Tenet network, improving overall ecosystem security.

This partnership comes at a crucial time when the demand for Decentralized Finance (DeFi) solutions and liquid staking derivatives is rapidly growing. The collaboration between Tenet and LayerZero has important implications for the larger blockchain ecosystem. As these two significant platforms combine their experience and resources, they have the potential to set new standards for decentralized banking and uncover a plethora of opportunities for developers and consumers alike.

Recently, Tenet has established several strategic alliances with large layer-1 chains, including a foray into the Asian market with Conflux and Qtum.