With insights from an announcement made by developers on May 3, 2023, Tenet, a new Cosmos-based blockchain, will make use of liquid staking coins from other networks to improve the security of its transactions, eventually adding the old security in the new network, stated Cointelegraph.
Sources revealed that currently, the network exists as a testnet and will be used as a mainnet after the testing process is completed. It is expected that after liquid staking has become one of the most used decentralised finance (DeFi) protocols, this new plan is brought up, added Cointelegraph.
As stated by Cointelegraph, using liquid staking derivatives (LSD) instead of the native coin, will “ensure the long-term security of the Tenet chain by leveraging the joint security of each [layer 1] ecosystem it services.” It is believed that it will also “bring additional liquidity and yield opportunities to LSDs.”
Furthermore, the new protocol might allow liquid staking derivatives of Ether, BNB, Cosmos, Solana and Polygon to re-stake on Tenet, Cointelegraph concluded.
(With insights from Cointelegraph)
