Tenet and Ankr Partner to Bring Liquid Staking Derivatives (LSDs) to More Blockchains

Mahe, Seychelles, May 16th, 2023, Chainwire

Tenet, the first layer-1 blockchain to create a DeFi Ecosystem for Liquid Staking Derivatives (LSDs), has joined forces with Ankr, a leading blockchain infrastructure provider, to increase adoption of LSDs across all blockchains, including those where liquid staking derivatives are currently not available yet.

As part of the partnership, Tenet will have discounted pricing on Ankr’s LSD integration services, which allows Proof of Stake Blockchain’s to easily set up liquid staking for their assets with Ankr. In addition, Tenet will help cover some of the integration costs for its partners in exchange for the new Blockchain’s committing a certain amount of LSD assets to Tenet’s network.

Proof of Stake networks today dominate the blockchain landscape, with the vast majority of alternative layer-one chains and application specific blockchains (“appchains”) each having their own staking token. Staking is key in securing the network to protect from economic attacks, which means that DeFi use cases that generate alternate sources of yield will potentially reduce the security of the network. By adopting liquid staking derivatives, which allow using staked assets in DeFi, the conundrum is effectively solved — increasing the security of the network as it scales.

Most LSD liquidity today comes from Lido, which means that smaller blockchains may need to wait some time before they see their chain integrated. Ankr, on the other hand, has created a white-label system that allows any project to quickly set up their own LSD.

By working with Tenet, projects will benefit from both the cheaper LSD integration services, as well as the Tenet layer-1 LSD ecosystem, which allows users to earn maximum yield on their assets by supplying them to various DeFi protocols on its network. In exchange, Tenet partners will need to commit a certain amount of LSD total value locked to Tenet Validators, which boosts its security model.

Tenet has a unique model called Diversified Proof of Stake (DiPoS), which supports staking with any LSD asset from other chains,

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Author: Crypto Daily

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