# 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.

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