TENET Cross-Chain Security with LSDs

Liquid Staking Derivatives (LSDs) can be used to create economic alliances between chains, resulting in a mutually beneficial relationship for all participants. By staking LSDs from other chains, users can earn staking rewards on the new chain, while simultaneously maintaining their stake on the original chain.

Moreover, the security of the new chain can be mathematically proven to be the sum of the security of all supported chains.

$$Security_{TENET} = \sum_{i=1}^n Security_i \times StakedLSD_i$$

For instance, if the Tenet network has a native staking asset, A, and two other chains have staking assets, B and C, which are also staked to Tenet, then the security of the Tenet network can be expressed as:

$Security_{A} = StakedA$

When LSDs representing staked B and C are added to the Tenet network, the new security value is:

$Security_{ABC} = StakedA + LSD_B + LSD_C$

Where LSD_B and LSD_C represent the value of the staked assets B and C, respectively.

This allows the security of a chain to be strengthened by cross-chain collaboration, even if the participating chains are of varying sizes and security levels.

The utilization of LSDs permits a more diverse and secure staking system, where the Tenet network can attain greater security and economic stability.