Tenet Protocol is a Layer 1 blockchain-level protocol based on Cosmos that is EVM compatible. It uses LayerZero cross-bridge LSD assets to bring LSD to the chain level. Leo, a columnist for the Rhythm, analyzed the project’s features, token economics, stablecoin lending, team and partners, and the launch of LSD Blockingd. He believes that the LSD track is hot, and it is not difficult for Tenet to become the next LSD giant. However, Tenet’s disadvantage is its over-reliance on LSD.
Tenet has two major features. The first is an innovative consensus mechanism called Diversified Proof of Stake (DPoS), which allows the network to be maintained not only through its native token, TENET, but also through the Omni-Chain tLSD token. The second feature is the introduction of its own decentralized stablecoin, LSDC (Liquid Staking Dollar), which is supported by LSD-type tokens. Users can use the over-collateralized LSD mint stablecoin as a decentralized stablecoin, with fully transparent reserve proof that can be viewed on-chain. Additionally, Tenet has launched its own wallet, Eva, which is designed for retail investors and is a keyless wallet that allows users to command on-chain operations through AI instructions.
The native token of Tenet is TENET, which is also used as gas to pay transaction fees on the Tenet chain. When users pledge TENET, they receive a TENET LSD called tTENET. The token model of TENET is based on veTokenomics, and users can lock tTENET to generate veTENET. Holding veTENET can earn rewards from various aspects, such as TENET validators, TENET stablecoin protocols, TENET money markets, and TENET DEX.
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The Tenet Stablecoin Protocol offers zero-interest loans and has higher capital efficiency (i.e. less collateral required for the same loan amount) compared to other lending systems. Users can also collateralize earning assets by participating in Tenet node validation. Users can lock LSD using the protocol to borrow LSDC, and then repay the loan on the expiration date instead of selling the collateral assets for liquidity. Users can also perform nested operations by collateralizing yield-bearing assets for loans and exchanging LSDC for more yield-bearing assets to obtain more funds and deposit them into CLIP for leverage. CLIP represents the collateralized liquid interest position, similar to Vaults or CDPs. Each CLIP is linked to a Tenet address, and each type of collateral can only have one CLIP per address.