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Tenet is a committed to building connectors and toolkits in the DeFi that provides liquidity accelerators, liquidity operation tools, DeFi trading aggregator, long tail asset lending solutions, etc. The basic function of Tenet is serving as a cross-chain Automated Market Maker (AMM) connector that provides a decentralized Liquidity Tap for various tokens. The Liquidity Tap is the powerhouse of the Liquidity Pool, employing a dynamic algorithm to give the Liquidity Providers fairer, richer and more efficient incentives. Thus, Tenet has the ability to attract more token holders to provide liquidity overtime.
Based on its basic functions, Tenet also developed and employed the DeFi trading aggregator. This function will allow each liquidity provider to participate and withdraw with one-click. After comparing the asset prices and APY (annual percentage yield) of several liquidity pools in different AMM platforms, it was observed that through the most optimized path to decrease the trading slippage and gas fee on chains, the complexity of frequently switching between platforms and comprehensive trading cost can also be reduced.
Before the conceptualization of Tenet, the demand side, which usually consists of token issuers, are required to design various smart contracts for different AMM platforms to ensure proportional distribution of token rewards for liquidity providers. Some token issuers even chose to allocate rewards manually to avoid the complexity and potential risk of initializing smart contracts. With the increasing popularity of liquidity mining, the demand side faces higher levels of complexity, such as unfair token rewards allocation for early participants, impermanent losses, bonus hunting, etc. Therefore, the combination of liquidity tap and liquidity pool can be a market standard in the future as it can fully guarantee the effectiveness and efficiency of AMMs. Meanwhile, when liquidity providers face multifarious pools on different AMM platforms, they cannot accurately detect the effective way to use their funds in a timely manner. Tenet’s technology could help resolve such pain points by serving as a connector.
Tenet aims to build a cross-chain and cross-platform toolkit protocol that serves as a relatively easy entrance for all DeFi participants. Tenet allows the demand side to customize all parameters of the liquidity tap, and help them reach out to more liquidity participants effectively. For token holders, Tenet is an integrated platform for yield farming. In contrast to most AMM platform’s high knowledge threshold and discreteness, Tenet provides a smarter and more convenient solution, and ensures fair allocation of mining rewards through the optimization of the algorithms of initial mining incentives and LP token pools. Based on the idle funds and unallocated rewards, Tenet also has huge potential to explore the long-tail asset lending market.