Understanding Tenet in One Read: Focus on LSD, a New Public Chain Based on Cosmos EVM
Understanding Tenet with Focus on LSD: A New Public Chain Using Cosmos EVM
Original: “Tenet: A new public chain designed for LSD”
Author: Leo
With the rise of the LSD narrative, innovative mechanisms for the LSD track are emerging one after another, such as frxETH V2 and Pendle. However, today we will introduce a new LSD protocol and, at the same time, a Layer 1 blockchain designed for LSD: the Tenet Protocol.
Tenet Protocol is an EVM-compatible Layer 1 blockchain-level protocol based on Cosmos. Using LayerZero to bridge LSD assets, Tenet brings LSD to the chain level. Let’s take a brief look at the unique features of this project.
Tenet features
Tenet has two major features. First, it has an innovative consensus mechanism called Diversified Proof of Stake. In brief, Tenet is PoS, and its “Diversified” innovation is that it not only maintains the network through its native token TENET, but also through Omni-Chain tLSD tokens to protect the network. It allows assets on one chain to be pledged to another chain instead of a single token maintaining network security, thus establishing a mutually beneficial economic relationship and increasing network security. Omni-Chain is also seen as a mainstream trend for future encryption by most people.
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Second, it has launched its own decentralized stablecoin LSDC (LSDC stands for Liquid Staking Dollar), supported by LSD-type tokens, including ETH, BNB, ADA, and ATOM, which will continue to increase in the future. Users can use excess collateralized LSD to mint stablecoins as decentralized stablecoins, and the reserve proof is completely transparent and can be viewed on the chain.
Users can use their LSD assets to borrow LSDC at zero interest and earn additional income from Tenet DeFi Dapp; add LSDC to stable pools and earn rewards from liquidation or Native Gauge voting. Currently, LSDC can be minted for a variety of LSD assets, including stETH, rETH, and ankrBNB.
In addition, Tenet Protocol also launched its wallet Eva at the end of May. Eva was designed with retail investors in mind, and is a keyless wallet designed for people with zero knowledge of encryption. It can also be commanded to perform on-chain operations through AI commands. In addition, Eva provides On/off-ramp fiat and wallet internal collateral, similar to the previous Sui wallet. Official download link (https://tenet.org/eva).
Tenet token
Tenet’s native token is TENET and is used as gas to pay transaction fees on the Tenet chain.
In addition, when users stake TENET, they receive a TENET LSD named tTENET. The token model for TENET comes from veTokenomics, and users can lock tTENET to generate veTENET. veTENET represents the TENET designated for voting, meaning that the longer tTENET is locked, the more veTENET is received. As with the traditional veToken model, veTENET can vote on protocol governance and reward standards. The shortest locking period for tTENET to become veTENET is one week, and the longest is one year. The following are the standards for locking tokens to obtain veTENET:
Holding veTENET can earn rewards from various levels:
- TENET validator
- TENET stablecoin protocol
- TENET money market
- TENET DEX
Tenet’s Stablecoin Lending
The Tenet Stablecoin Protocol provides zero-interest loans and has higher capital efficiency (i.e., less collateral required for the same amount of loans) compared to other lending systems. It also allows users to pledge assets that have generated revenue by participating in Tenet node validation. Users can lock LSD using this protocol, borrow LSDC, and then repay the loan on the due date instead of selling the collateral assets to obtain liquidity.
One of the advantages of Tenet is that users can perform nesting operations, pledge the yield-bearing collateral as a loan, and exchange LSDC for more yield-bearing collateral to obtain more funds and deposit them into CLIP to use leverage. This allows users to obtain additional liquidity from assets they wish to hold for the long term, enabling them to continue to exposure to assets to earn revenue.
CLIP stands for Collateralized Liquid Interest Position and is similar in concept to Vaults or CDPs. Each CLIP is bound to a Tenet address, and each collateral type can only have one CLIP for each address.
CLIP includes: collateral assets and debt denominated in LSDC. Users can change the CLIP amount at any time by adding collateral or repaying debt, and the collateralization ratio of the CLIP changes accordingly.
Tenet Team and Partners
The Tenet team includes senior professionals in the fields of DeFi and AI, including core team members or contributors from companies such as Ankr, Lido, Blockdaemon, and even Open AI. They are:
-CEO Greg Gopman – former Ankr CMO
-CPO Alex Cheng – former Tendermint and Composable Finance product manager
-CTO Dan Lashin – former Minter CTO, developer of Cosmos DEX and wallet
-BD and DeFi Partners – Owl Ventures co-founder
At present, its partners include Ankr and LayerZero, and other partners will be announced in the future.
Introduction and Interaction of Tenet’s LSD Blockingd
As mentioned earlier, LSD narrative is in a hot stage or may become the mainstream of the next bull market. Recently, Tenet also launched LSD Blockingd, the industry’s first launchBlockingd specifically designed for LSD key projects. LSD Blockingd is built on Tenet and aims to launch key LSD-related projects on the Tenet chain. It is also supported by the Tenet Foundation, and this launchBlockingd supports LSD DeFi, LSD Game, and LSD incentive products.
As the first launchBlockingd specifically for LSD key projects, LSD Blockingd, backed by Tenet, naturally has the opportunity to experience Tenet and other LSD ecological projects on the chain in advance. The native token of LSD Blockingd is LSDP. The operating method of LSD Blockingd is similar to that of other launchBlockingds:
-Stake LSDP
-Participate in IDO
-Purchase and confirm IDO allocation
Basically, the more you invest, the more shares you get. To celebrate the launch of LSD Blockingd, the Tenet team is conducting a Fairdrop, with a total supply of 20% of LSDP being airdropped to:
-Stakers in the Tenet Mainnet
-LSD stakers (including Ankr, Stader, and Lido’s LSD)
However, the snapshot time and specific airdrop rules have not been announced yet. Users can still go to the LSD Blockingd staking interaction, which is a simple process as shown below:
-Enter the staking official website
– Obtain TENET, which can currently be purchased through four trading platforms or through Uniswap, and then bridged to the TENET mainnet on other networks via Multichain.
– Enter the amount and click on “Stake” (currently participating in token staking to win NFT raffles, and in the future, it can be stored in the Eva wallet to participate in “Trade2Earn”)
Conclusion
Tenet combines LSDfi, L1 blockchain, Omni-Chain, native wallet, Fiat on-ramp, native token, native stablecoin, and AI into one. Currently, LSD is a hotly contested field, and it is not difficult for Tenet to become the next LSD giant. However, Tenet’s disadvantage is its over-reliance on LSD. If the LSD narrative disappears, Tenet will also disappear with it.
