Tenet has joined forces with Conflux and Qtum to increase its presence in Chinese markets
Tenet, the first layer-1 blockchain to create a DeFi Ecosystem for Liquid Staking Derivatives (LSDs), has joined forces with QTUM, a Proof of Stake network fusing the advantages of Ethereum and Bitcoin, and Conflux, a layer-1 network running on a hybrid Proof of Stake and Proof of Work consensus mechanism called Tree-Graph.
The collaborations will allow CFX and QTUM stakeholders to “re-stake” their assets on the Tenet blockchain to increase their payout. LSDs provide owners complete control over their assets while allowing them to profit fully from staking on the original network thanks to a liquid token that stands in for the underlying staked tokens. The LSD coin may be exchanged via decentralized protocols, used to create liquidity, or used to increase yield in DeFi.
Proof of Stake networks today dominate the blockchain landscape, with the vast majority of alternative layer-one chains and application-specific blockchains (“app chains”) each having their staking token. Staking is key in securing the network to protect it 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 problem 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 sometime before they see their chain integrated. 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 a 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, Diversified Proof of Stake (DiPoS), which supports staking with any LSD asset from other chains, such as ETH, BNB, ATOM, SOL, and ADA. This allows Tenet to be partially secured by all its supported networks, dramatically improving security compared to standard single-token Proof of Stake.
“The Asian market is often siloed from Western crypto projects, but it is a key avenue of expansion for any project wishing to become truly successful,” said Greg Gopman, co-founder of Tenet. “Partnering with Conflux and Qtum is a win-win for all involved, as the networks’ stakes get two extra sources of yield and much greater flexibility with their own customized LSD, while we receive extra security and a chance to tap into the enormous Asian blockchain community.”
Conflux, the first blockchain in China to be publicly regulated, offers a special hybrid PoW and PoS consensus along with complete support for EVM smart contracts. Several partners, including the City of Shanghai, McDonald’s (NYSE: MCD) China, China Telecom, and others, have integrated the network.
As Conflux’s Global BD Lead, Dora has expressed his excitement about the new partnership with Tenet, stating, “We are thrilled to partner with Tenet and bring the power of LSDs to our community. This partnership aligns with our mission to foster a truly decentralized ecosystem, and the integration of LSDs will not only give our stakers the ability to maximize their yield but also enhance the flexibility and utility of their assets.”
With 10% of the network’s supply staked, the CFX token is now trading at around a US$800 million market value and a US$1.5 billion fully diluted valuation. It has considerable momentum in the area being the only chain having regulatory backing in China. Tenet may get access to a big market and assist the Asian community by collaborating with Conflux.
Miguel Palencia, Qtum Co-Founder and COO said: “Partnering with Tenet allows Qtum to be one of the first blockchains to offer Liquid Staking Derivatives. This additional reward for lending computational resources to the network keeps in line with our green philosophy, and should help further strengthen both networks.”
A decentralized Proof-of-Stake blockchain called Qtum was introduced in 2017. Qtum provides a development platform with elastic scalability, ideal for embracing the Web3 revolution. It has a substantial presence in Asia and a developing Western community. As one of the first foundations to provide Tenet and Ankr-backed LSDs to its community, Qtum, with a peak market valuation of $6 billion, will be crucial in boosting Tenet’s acceptance and security.
