Une nouvelle course : les deux champions du LSD inter-chaînes dans l'écosystème Cosmos
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Une nouvelle course : les deux champions du LSD inter-chaînes dans l'écosystème Cosmos
Pour Cosmos, la meilleure réponse à l'affirmation « Cosmos est mort » serait l'émergence d'une chaîne enfant Cosmique véritablement phénoménale. Et le domaine du LSD omnichaînes semble pouvoir devenir ce point de rupture.
Dédié à des analyses Web3 approfondiesI. Introduction
"Cosmos is dead" – This phrase has been circulating frequently lately, filled with the disappointment, bitterness, and frustration of early supporters. Indeed, Cosmos’ recent performance has been underwhelming, with its ecosystem resembling stagnant water. So, when will the next breakout Cosmos chain emerge?
While the Cosmos ecosystem appears dormant, innovation within it never truly ceases.
Even amid the shadow cast by Terra’s collapse, chains like Evmos and Canto emerged as notable successes. Since then, however, the Cosmos ecosystem has largely remained silent, failing to produce any new breakout public chains.
Yet developers within the Cosmos ecosystem have continued pushing boundaries. The projects we discuss here are built on an entirely new frontier—cross-chain LSD.
LSD stands for "Liquid Staking Derivatives," a highly popular sector in crypto this year. The core idea behind LSD is unlocking liquidity from staked PoS assets, allowing users to earn both validator staking rewards and additional DeFi yield simultaneously;
According to DefiLlama data, the market cap of liquid-staked ETH has surpassed $20 billion
Cross-chain LSD extends asset utility across multiple blockchains, aiming to unlock even greater liquidity from staked assets and accumulate more value. It can be simply understood as adding another layer of utility on top of traditional LSD.
II. The Two Titans of Cross-Chain LSD
Interestingly, two cross-chain LSD protocols—Entangle Protocol and Tenet Protocol—both originate from the Cosmos ecosystem, making them potential twin pioneers of cross-chain LSD in Cosmos. Both Entangle and Tenet are application-specific chains built using the Cosmos SDK, focusing specifically on cross-chain LSD use cases. While their赛道 positioning is similar, their technical approaches differ significantly.
1. Entangle Protocol
Entangle is an EVM-compatible, oracle-centric application chain dedicated to cross-chain LSD. Its “cross-chain” nature enables the creation of LSD tokens backed by LP positions from any supported chain, which can then be used across other chains to generate multi-chain yields. For example: a user holding 1 unit of AVAX/USDC LP tokens on TraderJoe (Avalanche’s DEX) can use Entangle to mint 1 unit of AVAX/USDC LP-based liquid staking derivatives (LSDs) on Ethereum.
Core architecture of Entangle
Let’s set aside the technical implementation for now and first understand why such a design exists. Put differently, why would LP holders go through the trouble of re-staking their liquidity? As mentioned earlier, the reason is clear: Entangle enables an additional yield layer—the returns generated from LP-based LSDs.
Let’s look at two concrete examples:
Example 1:
1) Alice provides liquidity for stETH/ETH on Curve Finance and receives LP tokens;
2) Alice stakes her LP tokens via Entangle;
3) Entangle automatically deposits the LP tokens into Convex for compounding rewards;
4) Entangle issues Alice an LP-LSD receipt token;
5) Alice deposits the LP-LSD as collateral into Curvance to earn lending yield.
Example 2:
1) Bob provides AVAX-USDC liquidity on TraderJoe and receives LP tokens;
2) Bob stakes his LP tokens via Entangle;
3) Entangle automatically deposits the LP into TraderJoe’s yield farm for compounding;
4) Entangle issues Bob an LP-LSD on Polygon;
5) Bob deposits the LP-LSD as collateral into AAVE to earn lending yield (hypothetical scenario; AAVE does not currently support Entangle's LP-LSD).
This approach of stacking LSD assets across multiple DeFi protocols greatly enhances asset liquidity while generating sticky liquidity for the protocol (discussed further below).
1.1 Implementation Mechanism
The above scenarios are easy to grasp conceptually, but technically challenging to implement due to complex issues like cross-chain price feeds and asset anchoring. How does Entangle achieve these cross-chain LSD use cases?
The core of Entangle’s technical mechanism lies in Liquid Vaults (LVs). Using a native oracle network and internally deployed DEXs across multiple chains, Entangle deploys LVs on various supported blockchains.
Entangle allows liquidity from Chain A’s LV to mint LSDs at a 1:1 ratio on Chain B’s LV. Supported base assets fall into three categories: LP tokens from major DEXs (e.g., AVAX/USDC LP on TraderJoe), lending assets (e.g., USDC pool on AAVE), and liquid staking tokens (e.g., stETH). Essentially, Liquid Vaults wrap LP positions and map them across chains.
Operation flow of Entangle’s Liquid Vaults
By leveraging its native distributed oracle solution, E-DOS (Entangle Distributed Oracle Solution), Entangle provides low-cost, cross-chain price feeds for dApps, eliminating reliance on third-party oracles.
Architecture of Entangle’s native oracle E-DOS
1.2 Sticky Liquidity
The realization of LP-LSD use cases brings users higher capital efficiency, while from the protocol’s perspective, it generates “sticky liquidity.”
Many DeFi projects rely on aggressive tokenomics (high inflation rates, fast emissions) to attract initial liquidity. However, this model is unsustainable—it rapidly dilutes tokens and reduces protocol revenue. Once LP yields fail to meet expectations, users withdraw liquidity, resulting in non-sticky liquidity.
Entangle’s cross-chain LSD infrastructure empowers cross-chain LPs, enhancing liquidity incentives and thereby increasing the “stickiness” of liquidity.
2. Tenet Protocol
While Entangle enables cross-chain applications for LP-LSDs, Tenet provides specific utility for cross-chain LSDs—namely, staking on the Tenet chain. The former resembles a meshed structure, the latter a centralized one.
Like Entangle, Tenet is also an EVM-compatible application chain built on the Cosmos SDK, deeply integrated with LayerZero’s cross-chain interoperability infrastructure to enable chain-level empowerment of LSD assets.
The core innovation of Tenet’s cross-chain LSD implementation lies in its novel consensus mechanism—DiPoS (Diversified Proof of Stake). In simple terms, users are no longer limited to securing the network by staking only the native $TENET token as validators or delegators—any LSD asset across chains can now participate.
2.1 Supported LSD Asset Categories
Tenet supports a basket of assets as stakeable assets under its DiPoS consensus, including stETH and rETH issued by liquid staking protocols like Lido and RocketPool, as well as exchange-issued LSDs such as cbETH and wBETH from Coinbase and Binance.
Additionally, users can directly stake PoS assets through Tenet’s native liquid staking module without paying any management fees (note: Lido charges a 10% fee). Initially supported PoS tokens include ETH, ATOM, BNB, MATIC, ADA, and DOT, with plans to gradually expand to more PoS assets.
Through this model, PoS stakers earn native network consensus rewards while also receiving block rewards and transaction fee shares from Tenet. This cross-chain staking method strengthens inter-chain connections, creating a positive-sum effect—LSD stakers gain higher yields, while Tenet achieves enhanced network security via DiPoS.
III. Dream Synergy
Although both Entangle and Tenet belong to the category of cross-chain LSD application chains rooted in the Cosmos ecosystem, their relationship seems more collaborative than competitive.
Entangle focuses primarily on LP-LSD, offering cross-chain LSD services for LP assets; Tenet centers around DiPoS, enabling diverse LSD assets to participate in consensus staking. Imagine if, in the future, Tenet could accept Entangle’s LP-LSD as valid staking assets under DiPoS—LP-LSD holders would earn additional rewards from Tenet, while Tenet gains enhanced security from the added staked value. That would be true dream synergy.
IV. Afterword
The LSD summer brought several waves of excitement to DeFi, yet cross-chain LSD has so far received little market attention. As a nascent sector, whether cross-chain LSD will explode or quietly fade away remains to be seen.
For Cosmos, the strongest rebuttal to “Cosmos is dead” would be the emergence of a breakout Cosmos chain. And the cross-chain LSD sector may just hold the key to that breakthrough.
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