Former executives from blockchain companies Ankr and Blockdaemon have teamed up to create Tenet, the first Layer 1 blockchain designed to serve as a hub for Liquid Staking Derivatives (LSDs). Tenet emerged from stealth mode on Monday, unveiling its Testnet and enabling developers to experiment with the platform.
Tenet is an EVM-compatible L1 protocol that aims to bring additional liquidity and yield opportunities to LSDs by allowing users to re-stake their assets on the network and participate in Tenet’s DeFi ecosystem.
Unlike other Cosmos chains that rely on their own native token for Proof of Stake security, Tenet validators can use a mechanism called Diversified Proof of Stake (DiPoS) to validate the network.
DiPoS enables the Tenet network to be validated by re-staking LSDs from other L1 ecosystems supported by Tenet, such as ETH, BNB, ATOM, SOL, and Matic. This ensures the long-term security of the Tenet chain by leveraging the joint security of each L1 ecosystem it services.
The lack of shared security has been a well-known adoption roadblock for many chains in the ecosystem.
The LSDs re-staked to the Tenet network can be used like other LSDs, enabling users to take advantage of DeFi opportunities on Tenet.
In addition to DEXs and lending pools, users can also mint the Universal Stablecoin interest-free, allowing them to receive an “advance” on their future LSD yields, which became the largest market vertical in Defi this year, surpassing DEX’s with $17.5 billion in TVL.
Tenet also offers the first L1 ecosystem with native gauges, enabling veTenet token holders to direct rewards to the pools they choose. Projects often offer “bribes” to direct rewards to their tokens, increasing the utility of veTenet.
The Tenet product vision aims to simplify the staking experience for users, and one of the pillars of this vision is the Eva mobile wallet. This retail-friendly mobile app uses an AI chatbot to educate users about DeFi and automates interactions with the Tenet chain through optimized yield strategies.
The project is co-founded by Greg Gopman, previously CMO at Ankr, and Dan Peterson, formerly the Revenue Operations Specialist at Blockdaemon.
Four more experienced core members round out technical and BD expertise, while advisors from Lido, Ankr, and OpenAI offer invaluable support to expand and grow the protocol.
Tenet plans to roll out a grants program and a global DeFi hackathon series to engage developers worldwide while preparing for the fair community launch of the Tenet blockchain. DeFi protocols and developers interested in taking advantage of LSD liquidity can sign up for the Testnet and familiarize themselves with the platform.