Interoperability continues to pose an issue for AMMs, while Tenet connects popular DeFi protocols via the native TEN token.
Passive income opportunities
2020 saw decentralized finance protocols unlock a number of new and exciting passive income opportunities. Decentralized AMM (automated market maker) exchanges such as Uniswap, Balancer, and Curve have become extremely popular platforms with the growing popularity of liquidity mining and yield farming. As we enter 2021, the total value locked in DeFi protocols exceeded $ 17 billion.
Although decentralized finance protocols have evolved rapidly in a short period of time, there are still a few trouble spots in the DeFi space.
When it comes to liquidity mining, complex smart contracting for project teams and cumbersome user experiences for liquidity providers using several AMMs at the same time are bottlenecks that require attention for further maturation of the field.
Tenet, supported by DREP Signal Labs, a blockchain incubator supported by the DREP Foundation, is trying to address these challenges as a cross-chain AMM “super linker”. The project provides a decentralized Deed of Liquidity for various tokens and connects decentralized exchanges on several popular blockchains.
DeFi industry complexity
Projects, token issuers, and liquidity miners all face bottlenecks as they cross the current DeFi environment. On the demand side, token issuers face complex and risky challenges when designing smart contracts for use in various AMMs, as they must ensure a proportional distribution of token rewards for liquidity providers.
On the liquidity provider side, AMMs based on different public chains mean that farming faces increased fees, more time spent processing, and a cumbersome overall user experience.
Layer 2 cross chain DeFi innovation
Tenet is trying to address the aforementioned issues with a cross chain AMM connector, layer 2 solutions, customizable design solutions, and a deep liquidity generator.
The platform also offers faster cross-platform and cross-chain asset exchange through an “AMM Integration Framework” protocol, making interactions with different blockchains and AMMs easier and faster.