Restaking on Tenet

Today, we will take a look at the first component in our tech stack, Tenet’s restaking factory, which enables the restaking of LSDs to Tenet, along with the relevant audit report and finally some alpha on our mainnet launch strategy.

What is restaking?

Proof of stake blockchains, such as Ethereum, allow users to stake their assets to secure the network and participate in network consensus. Many protocols now offer liquid staking, where users can participate in staking but maintain their liquidity — when they stake with a liquid staking provider they get issued a liquid representation of their staked position — a so-called liquid staking derivative (LSD).

Restaking in the context of Tenet allows you to take these already staked assets, LSDs, and stake them once more to the Tenet network, securing the network, participating in consensus and receiving rewards in the form of TENET tokens.

On Tenet, we also issue users a liquid representation of their restaked position — in this case a Tenet LSD or tLSD.

tLSD MasterFactory

The tLSD MasterFactory allows users to restake their LSDs or TENET to a specific validator and receive back a tLSD, and later to unstake their LSDs/TENET (which has an unbonding period of 2 weeks) by burning their tLSD.

The MasterFactory also allows developers to develop SubFactories that can stake and unstake LSDs/TENET for a specific protocol on the Tenet network — we will dive into why we need this after taking a look at the restaking mechanism).

Tenet network has an active validator set of 64, allowing users to stake to any validator of their choice with the top 64 being the active set. This means that when a user restakes to a validator in the Tenet network, they receive back a validator specific tLSD.

So for instance, if a user starts with SWETH and restakes this to the validator with ID 1, they will receive back tSWETH-1.

This is obviously not that useful for use across the DeFi space due to issues of liquidity fragmentation.

Tenet solves this problem using a sub-factory specifically designed for the Tenet Aggregator. The Tenet Aggregator sub-factory takes an LSD, restakes it using certain criteria to a selection of the active validators and issues the user a non-validator specific tLSD which represents the underlying LSD staked across a basket of validators.

In this example, if a user starts with SWETH and restakes this through the aggregator, they will receive back tSWETH — a much more useful asset with diversified validator risk.

You can check the audit results for our tLSD MasterFactory here

How to Restake

Using the Tenet Dashboard, users will be able select the LSD they wish to restake and choose whether they want to utilise the aggregator or not.

If a user does not wish to receive the aggregated tLSD, they will be promoted to select a validator to restake to. If they use the aggregator, the validator will be selected for them based on the parameters of the aggregator protocol.

And it’s as simple as that! Upon confirming, the user will be prompted to sign the transaction and the restaking will be complete.

Unstaking is just a simple, the users switches to undelegate mode and selects the amount they wish to unstake. Upon confirmation, the two week countdown begins, after which the tokens are automatically credited to the user’s account.

So simple, everyone can benefit from additional yield on their LSDs!

Tenet Drop

If you’ve gotten this far, you deserve a little alpha. Many of the questions we receive from our community are related to the benefits of their current actions.

• What’s the utility for the Tenet Scanner NFTs?
• What are the rewards for Eva Staking?
• Why should I bridge to Tenet before mainnet launch?
• Is the testnet incentivised?

Today, we are pleased to be able to answer all of your questions with the introduction of the first Tenet Drop campaign.

As certain savvy users will have noticed, we have set aside 4% of the Tenet token supply for airdrops. These drops, coined Tenet Drops, will be designed in seasons to incentivise the growth and adoption of Tenet’s products.

Season 1 will be focused on restaking — users that restake to Tenet early will be rewarded with additional yield from the Tenet Drop. But, we wanted to go one step further and reward our earliest supporters. All of the actions that you take today, will result in a multiplier effect on the amount of rewards you receive from the first Tenet Drop. We will be taking into consideration many actions on the Tenet network and beyond, including:

• Bridging to Tenet
• Staking TENET on Eva Staking
• Holding Tenet Scanner NFTs
• Testing LSDC on our current testnet
• Participating in our public testnet campaign
• Providing liquidity on Maverick
• Bonding and swapping on Tendieswap
• Bridging NFTs using Merkly
• Minting Tenet Troopers on Mercle

and more!

So, rest assured that all your current activity will be recognised once we go live with restaking!