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Using Liquid Staking Derivatives (LSDs)

The Tenet basket of validation assets uses staked Proof of Stake assets. Therefore, Tenet accepts liquid staking derivatives such as those minted via protocols like Lido and RocketPool or even institutions like Binance and Coinbase.

LSDs like wstETH and cbETH can be used to participate in Tenet validation and earn block rewards, while still earning the ETH staking yield that the LSDs offer.

These LSDs are easy to capture as there is often low demand for them. They are just held in wallets. Tenet offers LSD holders a significant additional opportunity for yield: a value swap of Tenet block rewards for boosted security of the Tenet network and contribution to governance of the network and its native applications.

LSD holders can become Tenet validators or delegators to other nodes. They can then continue to earn their yield while earning a second layer of income through the Tenet block rewards.