📖Introduction

Introducing yTAO: The First Native TAO Compatible, Yield-Optimized-By-AI, Liquid Staking Token (LST) For The Bittensor Ecosystem

With its launch in March 2023, Bittensor single-handedly revolutionized both the AI and blockchain markets with its decentralized marketplace for machine learning. By creating a peer-to-peer market for machine intelligence, it provided a platform for AI developers to get access to an incentivized network of machine learning models.

At the heart of its innovative model lies the TAO token, which represents the contributions that individual developers have made to the network and the quality of their models. TAO effectively serves as a representation of the collective intelligence and insights contained within the network.

However, the TAO token currently faces two major hurdles in unlocking its full value. Firstly, to earn yield on their TAO tokens, holders must stake them, which locks them up, making them inaccessible for deploying in further yield-bearing activities. Meanwhile, the process of staking involves delegating your TAO to subnet validators. Determining the optimal subnet validator to delegate to on an ongoing basis is an active process with many complex variables, meaning most stakers are receiving suboptimal yields.

TaiNet solves both of these problems with the introduction of yTAO, the first yield-optimized, native-TAO compatible, liquid staking token (LST) for the Bittensor ecosystem.

Users can deposit both native TAO and wTAO tokens into TaiNet, which will use AI-driven strategies to delegate them into the optimal validators on an ongoing basis. In return, the user will receive an equivalent quantity of yTAO tokens. yTAO tokens are fully tradable, meaning they remain liquid for deploying in additional yield-bearing DeFi activities, even whilst the underlying holdings remain staked. Therefore, yTAO solves the issue of unlocking liquidity for staked TAO tokens, whilst simultaneously continuously optimizing yields in the background. Yields are then further boosted compared to regular staking via TaiNet’s unique revenue generation strategies.