# TenderSwap - Efficient LST Liquidity

TenderSwap is Tenderize’s decentralized exchange tailored for liquid staked tokens (LSTs). By leveraging a shared liquidity model, it optimizes liquidity for validator-specific tTokens while reducing capital inefficiencies.

### **Why TenderSwap?**

1. **Shared Liquidity Pools:**
   * Unlike traditional DEXs like Uniswap or Curve, TenderSwap consolidates liquidity for homogenous assets.
   * All tTokens for the same underlying asset (e.g., tLPT) share a single pool, enabling efficient swaps and eliminating liquidity fragmentation.
2. **Capital Efficiency:**
   * No separate liquidity provision is required for new tTokens.
   * New tTokens automatically use the existing pool, ensuring instant liquidity without additional capital.
3. **Low Slippage and Dynamic Fees:**
   * Swaps incur fees that adjust dynamically based on pool utilization and specific tToken demand, ensuring fair access and incentivizing balanced liquidity.
4. **Applications Beyond Tenderize:**
   * **Staking Service Providers:** Offer liquid staking without managing liquidity in-house.
   * **Solo Stakers:** Gain liquidity or lend staked assets while continuing to validate networks.
   * **Indexes and ETFs:** Easily rebalance or sell individual tTokens.
   * **Borrowing and Lending Protocols:** Use TenderSwap’s deep liquidity for routing and liquidations.

### **Comparison to Traditional DEXs:**

* **Uniswap/Curve Challenges:**
  * Require separate pools for each LST, leading to inefficiencies and fragmented liquidity.
  * Capital is locked in pools instead of being used productively elsewhere.
* **TenderSwap Solution:**
  * Shares liquidity across all like-assets, maximizing efficiency and decentralization while reducing costs for users.

### **Expanding Beyond Tenderize LSTs:**

TenderSwap’s innovative liquidity model can also support protocol-specific LSTs beyond Tenderize, fostering a broader ecosystem for liquid staking.

The Tenderize team has brought this novel approach to Ethereum with lpETH. 

<figure><img src="/files/rdMhyqAPEjOA2EZSPkLm" alt=""><figcaption></figcaption></figure>

{% embed url="<https://www.lpeth.xyz/>" %}

<figure><img src="/files/Vn5acnfuNAfyFSoShAPX" alt=""><figcaption></figcaption></figure>


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