This article delves into the world of Tenet, exploring its innovative approach to enhancing liquidity, yield opportunities, and network security. We will examine the inner workings of Tenet’s ecosystem, its powerful suite of tools and features, and its grand vision for redefining the LSDfi space.
Tenet is a standout player in the blockchain industry, primarily due to its unique capacity to generate additional yield and utility for LSD tokens. Alongside this, Tenet focuses on efficient capital use, offers multiple avenues for yield, and maintains a well-managed governance system. Essentially, it’s reshaping our approach to LSDs within decentralized finance.
What is Tenet Blockchain?
Built using the Cosmos SDK, the Tenet blockchain stands out as a powerful and user-friendly platform. Its native token is traded on several exchanges and has seen millions of daily volumes since the mainnet launch.
A revolutionary offering of Tenet is its decentralized stablecoin, LSDC, which allows you to borrow without interest against LSDs so that you can continue to earn yield whilst unlocking additional value and utility. Tenet’s LSDC stablecoin also features ecosystem-wide governance utilizing their unique DiPoS model.
LSD Pad is the first-of-its-kind launchpad dedicated to LSD-centric projects. The LSD Pad, powered by its native LSDP token, hosts LSD DeFi, LSD Game, and LSD incentive products. Like other launchpads, the LSD Pad will give the Tenet community first priority when it comes to exploring LSD ecosystem projects on Tenet and other chains.
Other distinguishing features of Tenet include:
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Ethereum Virtual Machine Compatibility: Tenet leverages the Ethereum Virtual Machine (EVM), making it compatible with Ethereum-based applications.
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Liquid Staking Derivatives (LSDs): Tenet utilizes the innovative concept of LSDs, enhancing both its functionality and security. Imagine you have a stake in a company, which means you own a part of it. Now, suppose you can convert that stake into a token that you can trade or use in other ways. That’s what Liquid Staking Derivatives are but in the context of a blockchain network.
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Diversified Proof of Stake (DiPoS) mechanism: Unlike traditional blockchains that depend solely on their native tokens for security, Tenet uses its own Tenet tokens and LSD tokens from other networks. This bolsters security and encourages cooperation among various digital currencies.
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Meta LSDs: Tenet’s Meta LSDs will bring unrivaled cross-chain utility to tLSDs, making them the ultimate yield-generating asset across the DeFi space.
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Tenet Dashboard: All of Tenet’s native offerings will be available from a single dashboard, pioneering in usability and user experience to bring access to Tenet’s products to DeFi users of all capabilities.
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User-Friendly Digital Wallet: To complement its features, Tenet provides Eva, a digital wallet that is intuitive and user-friendly, catering to both new and experienced users of digital currencies.
What is Tenet Token?
At its core, Tenet ($TENET) is the native token of the Tenet blockchain. Think of it like the currency used to pay for transactions that happen on the Tenet blockchain, similar to how you pay for groceries with your local currency. This is why it’s often referred to as a “gas token”. It’s the fuel that drives actions on the Tenet blockchain.
However, the Tenet token does more than just pay for transactions. It’s also a crucial part of the process that keeps the blockchain secure — Diversified Proof of Stake (DiPoS). This system relies on users of the blockchain staking their tokens to help validate transactions, which helps keep the whole system running smoothly and securely.
Notably, the Tenet token has two unique forms:
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tTenet: This is like a receipt you get when you put your Tenet tokens in a savings account (staking). It shows that you have Tenet tokens earning rewards. The best part? Even though your tokens are in the savings account, you can still use this receipt (tTenet) to do other things!
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veTenet: Think of this as a VIP pass you get when you promise to keep your tTenet in the savings account for a long time. The longer you promise to keep it there, the more perks (Tenet) you get. These VIP passes give you special rights, like voting on who gets the most rewards for staking and getting extra rewards.
To put it simply, these three tokens — Tenet, tTenet, and veTenet — work together to keep the Tenet blockchain running smoothly and to make its financial system (DeFi ecosystem) better for everyone.
How to Stake Tenet
If you’re interested in staking Tenet and earning rewards, there’s a process to follow. Here’s a step-by-step guide to make it simple:
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Stake Tenet with a Validator: Here, the validator is acting like a bank. You’re depositing your Tenet tokens with them for safekeeping. In return, they use those tokens to help validate transactions and keep the Tenet blockchain secure.
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Receive tTenet: Once you’ve staked your Tenet tokens, you’ll receive tTenet in return. These tokens represent your staked Tenet tokens. It’s like having a certificate of deposit at a bank. It shows that you’ve deposited a certain amount and are earning interest on it.
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Lock Tenet to produce veTenet: You can also take your Tenet tokens and lock them up for a period of time to create veTenet tokens. The longer you lock your tokens, the more veTenet you’ll receive. It’s similar to a term deposit at a bank – the longer you agree to leave your money untouched, the higher the interest rate you’ll receive.
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Benefits of veTenet: Holding veTenet tokens comes with a number of perks. For one, you get voting rights on the gauges. This means you can have a say in important decisions about how the Tenet incentives system operates. On top of that, you’ll earn rewards. These can come from various sources, such as the Tenet Validators, the Tenet Stablecoin Protocol, Meta LSDs and the Tenet Decentralized Exchange.
Using Liquid Staking Derivatives (LSDs)
You can use LSDs to:
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Participate in the network’s consensus mechanism
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Earn staking rewards
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Trade and use your staked assets in DeFi protocols
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Choose to be a validator or a delegator in the Tenet Network
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Convert your staked positions into liquid assets
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Increase network security through decentralization
Understanding LSDs
In the simplest terms, LSDs are digital assets that symbolize a staked position in a PoS blockchain. They offer you a way to participate in the network’s consensus mechanism and keep your staked assets liquid.
So what’s the big deal about this? Well, it means you can reap the benefits of staking rewards, chip into network security, and still have the freedom to trade or use your staked assets in DeFi protocols.
Participation in Tenet validation
Tenet validation involves verifying and validating new transactions and blocks within the network. By participating as a validator, you earn network transaction fees and accumulate the staking yield provided by your LSDs. This dual-earning strategy has the potential to generate a higher overall return.
As an LSD holder in the Tenet network, you get to choose between being a validator or a delegator.
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Validators are the network’s superheroes, but this comes with great responsibility — they propose and authenticate new blocks.
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Alternatively, as a delegator, you can lend your staking power to a trustworthy validator.
Now, if this all sounds a bit daunting or time-consuming, there’s a solution at hand: Everstake. We are a leading staking provider that smoothly links institutional and retail delegators with the top blockchain ecosystems. By staking with us, you can skip the complexities of becoming a validator yourself and still reap the benefits of the Tenet network.
Key Takeaways
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LSDs are digital assets that symbolize a staked position in a PoS blockchain.
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They allow you to participate in the network’s consensus mechanism and keep your staked assets liquid.
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You can choose to be a validator or a delegator in the Tenet network.
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Tenet provides the infrastructure to turn your staked positions into liquid assets.
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Tenet’s primary focus is on increasing network security and decentralization.
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The use of LSDs is part of Tenet’s strategy to build a diversified PoS ecosystem.
The Concept of LSDC Stablecoin
The Liquid Staking Dollar Coin (LSDC) is a stablecoin designed to maximize returns on staked assets. It’s a stablecoin governed by and created for leading Proof of Stake blockchains. Here’s the concept of LSDC broken down:
Stake: Users provide Liquid Staking Derivatives (LSDs) to Tenet validators, enhancing network security and participating in ecosystem voting. They receive an LSD equivalent to their stakes.
Mint: Users borrow LSDC against their staked assets at 0% interest. This allows them to maintain yield on their base assets while leveraging additional liquidity with LSDC. Borrowed LSDC can be distributed across the DeFi ecosystem, used in the stability module, or added to LSDC pairs for liquidity.
Earn: Users stake LSDC in the stability module to earn additional yield from liquidations and Tenet token rewards from the gauge voting.
LSDC offers a unique stablecoin combining yield-bearing collateral, ecosystem governance and a scalable collateral base. As LSDs gain traction and more Layer-1 tokens are locked, LSDC targets a $10B+ idle LSD market through this novel protocol. Their goal is to maximize liquidity from idle LSDs, fostering a vibrant, profitable ecosystem.
The Takeaway
Tenet has made a compelling entrance into the LSDfi landscape, skillfully leveraging Liquid Staking Derivatives (LSDs) and the Liquid Staking Dollar Coin (LSDC) stablecoin. It gives users the power to hold onto their liquidity while staking, earn network transaction fees, and unlock more liquidity and utility with the help of LSDC.
Moreover, the Tenet ecosystem brings the Tenet Dashboard and EVA wallet to the table, easing crypto interactions for users of all experience levels and helping to onboard new users to the DeFi space.
Taking a look at Everstake, a major player in staking and one of Tenet’s network validators, it could offer several advantages. Everstake bridges both institutional and retail delegators to top-tier ecosystems in the blockchain sector, which could ramp up returns and diversify exposure for users staking their assets through this provider. Opting for Everstake as a validator could give users a leg up, leveraging the provider’s expertise and connections to enrich their staking experience on the Tenet platform.
For more insights and updates, consider subscribing to Tenet’s Blockchain Manager on Twitter. If you have any questions regarding staking with Everstake or how and when you can stake Tenet, check out this dedicated Everstake & Tenet page.
