Tenet Farm Project Review: A De-Fi Layer 2 Solution and AMM Connector

Tenet is a cross-chain AMM connector using layer two solutions to bootstrap liquidity for various tokens using its “Liquidity Tap.”

By
Rich
on
January 22, 2021
Category:
Project Insight

Tenet

Tenet is a layer-two facility for Automated Market Maker (AMM) mechanisms. This protocol provides a cross-chain and cross-platform toolkit allowing (new) De-Fi users to easily (one-click system) become Liquidity Providers. Tenet supports various protocols on both the Ethereum Network and the Binance Smart Chain (BSC). 

After a successful, sold-out IFO (Initial Farm Offering) earlier this month on PancakeSwap, the $TEN token was introduced to the BSC.  The Tenet platform is fully functional on the BSC due to the recently added bridge function and newly minted tokens. This bridge enables seamless swaps between Ethereum ERC-20 $TEN tokens to the BSC native BEP-20 $TEN tokens.


Liquidity Tap


Liquidity Tap simplifies the process of liquidity pools, from creation to reward distribution, ending the need to develop smart contracts or perform manual distribution across multiple AMM platforms.

By creating a Liquidity Tap, Tenet will allow the demand side to customize all liquidity tap parameters, helping them (projects) get more liquidity from participants. New Liquidity Taps get reviewed by the Tenet team and will either be deemed high or low risk; low risk means the team approved them. The increased risk Taps will give a better APY but, as suggested, at a higher risk of loss. There are three low-risk taps for both Ethereum and BSC and 13 high-risk taps on the BSC,  and no high-risk taps on Ethereum.

Tenet is an integrated platform for yield farming; it incentives the liquidity provider by distributing mining proceeds from the different liquidity pools. This will benefit LP’s in 3 ways: 

--From the AMM platform’s commission

--From the liquidity demand side’s Token incentive

--From the Tenet’s mining proceeds 

On top of this, liquidity providers that obtain their mining revenue through Tenet earn $TEN tokens as an extra incentive. Tenets system ensurers a fair allocation of mining rewards by optimizing the algorithms from initial mining incentives and LP token pools.

Have a look at THIS video explaining how to provide liquidity for Tenet.

The incentive loop of $TEN


$TEN Token

$TEN tokens also feature a unique tokenomics model that distributes marginal diminishing rewards until they are exhausted. Tenet incorporates this model to reduce the available rewards as the circulating supply begins to reach the total supply. This allows rewards to last for longer while also rewarding early adopters with more rewards. Tenet mining on the BSC will be carried out as follows:

The initial block reward of TEN is 0.2, which lasts for 100,000 blocks. After that, the block reward is adjusted to 0.025, and decreases by 5% for every 200,000 blocks (one cycle). Mining is expected to conclude after 50 cycles. 

Each block generates $TEN that will be split up between LP’s and creators of Liquidity Taps; in a 1:1 ratio. As a liquidity provider, the mined $TEN belongs to you; as a Liquidity Tab creator, the mined $TEN gets distributed across all Liquidity Tap’s LP’s. Of course, you can also buy $TEN tokens, currently sold at UniSwap (ETH) and PancakeSwap (BSC) AMM’s

These rewards on the BSC will be available for just shy of a year, but returns will begin diminishing every cycle until exhausted. For more information regarding the TEN tokenomics model, check out their white paper.

Initially, $TEN was an Ethereum ERC-20 token, but making a cross-chain move has also delivered $TEN tokens to the BSC. The initial supply for the BSC was provided via an IFO held at PancakeSwap. There were 1 million $TEN tokens reserved for the sale, totaling 1 Million US Dollars in revenue. This makes the circulating supply now 3,234,398 out of a 3,457,970 max supply of $TEN tokens. The supply of $TEN on the BSC amounts to 1,526,821 $TEN, while the Ethereum Network contains 1,707,577  $TEN tokens.


Future

The Tenet team has several things planned out for the (near) future; the first thing to be accomplished would be the governance function for $TEN holders. The plan states that holders of at least 1% of the circulating supply of $TEN tokens can create governance proposals. To finalize a vote, the majority must have been in favor and have at least 4% of the circulating supply supporting the votes.

There are also plans of using idle funds and unclaimed rewards as collateral to provide a unique lending and borrowing protocol. Further, the Tenet team is expanding on to more networks, potentially bridging even more users across various chains. Finally, the team is attempting to get their $TEN token listed on multiple major exchanges.


Final Thoughts

Tenet makes it easy to get the most out of your LP tokens connecting various AMM liquidity and finding the most profitable, and channeling it through their service. The high/low-risk categories should help users to invest their funds. As for degens or risky users, they could choose the high-risk ones and get possible very high returns; as they say, high-risk, high reward.

Allowing users to use Tenet on both  Ethereum and BSC just by using the bridge function is very cool and helps Ethereum users save a lot of gas fees once they are bridged over to the BSC.

The positive audit by Knownsec Blockchain Security Research is also a nice reassurance for its users.

All in all, I can say the Tenet project is very nice and easy to use, providing another form of De-Fi products for liquidity providers. Tenet uses their $TEN token as an extra incentive on top of pool rewards to further the efficiency of AMM’s

For more information on Tenet Farm, you can check out their project and media pages:

Website

Telegram

Twitter

Medium


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Rich

Richard is a multilingual writer, located in the Netherlands, husband and father, cryptocurrency and tech enthousiast enjoys long walks and bicycle rides. Fervent Binance Smart Chain projects promotor.