⚙️yTAO

yTAO is TaiNet’s innovative yield-optimized, native TAO compatible, Liquid Staking Token (LST) for the Bittensor ecosystem. Users deposit quantities of TAO or wTAO into TaiNet, which are then delegated via our AI algorithms into the optimal validators to maximize their yields. In return, they receive an equivalent amount of yTAO, which represents their staked tokens and their share of yield generated by protocol controlled assets. yTAO provides its holders 3 key benefits:

• Liquidity: Whilst the underlying TAO remains staked in the Bittensor ecosystem, yTAO remains fully liquid. This means it can be traded on DEXs across multiple blockchains and deployed in a range of DeFi activities to further increase yields whilst staking rewards continue to accumulate in the background.

• AI-Driven Yield-Optimization: yTAO optimizes yields by deploying its AI-driven strategies to determine the optimal validator to delegate protocol-held TAO to on an ongoing basis. TaiNet’s algorithm’s intake data from past emission reweightings and aims to predict how other actively rebalancing delegates will behave. Predicting where delegation will go enables the protocol to position itself in validators that have potential to maximize rewards for yTAO holders. It also allows TaiNet to acquire a greater weighting from the Root Network, and begin to delegate yield towards paying down subnet registration fees and associated costs in order to run full validators on these maximally profitable subnets.

• Amplifying Yields: TaiNet then deploys real-yield backed strategies to amplify staked TAO yields over and above their inherent staking rewards. This is achieved via our unique revenue generation mechanisms, whereby 50% of mint fees, redemption fees and yield fees go towards yTAO stakers. This results in a further yield boost compared with delegating manually to the highest yielding subnet.