Introduction

This documentation aims to familiarize general users with Tensorplex LST and also serve as a comprehensive guide for developers working with Tensorplex LST tokens.

What is Tensorplex LST

Tensorplex LST represents a leading liquid staking solution for Decentralised AI Network tokens, beginning with Bittensor (TAO). It offers users a straightforward method to participate in the network and earn rewards on their Decentralised AI network tokens. By opting for Tensorplex LST, your tokens remain liquid, allowing seamless integration and use in various DeFi applications, thus enhancing their composability.

Liquid Staking

Problem Statement

Proof-of-Stake (PoS) protocols, while bolstering network security and providing rewards for TAO holders who stake their tokens, come with the downside of locking up TAO, thus restricting access to its liquidity.

Moreover, in order to stake TAO, users would need to use a Bittensor-compatible wallet instead of the commonly used EVM wallets, thus creating a friction in onboarding experience as existing EVM users would need to learn how to create and manage their own Bittensor-compatible wallets in order to stake TAO directly.

Solution

Tensorplex LST addresses these limitations with stTAO which can be used in other ecosystems and applications, thus enhancing flexibility. The benefits of this liquid staking approach include:

• Users are able to stake TAO directly on Ethereum using an EVM Compatible Wallet instead of having to create a Bittensor Compatible Wallet, thus creating a better onboarding staking user experience for users who are more familiar with Ethereum.

• stTAO can be used for DeFi activities, including providing liquidity and collateral to Liquidity Pool and Lending Platforms respectively, thus giving users access to potential additional yields on top of existing staking rewards.

The base APR (excluding protocol fees) earned by the users of our LST will be the weighted average of the APR from the validators used by the LST, including Opentensor Foundation, τaosτaτs & Corcel, Bittensor Guru Podcast, RoundTable21 as well as Tensorplex Validator.

• There will be a 0.1% staking fee initially to limit risk of MEV attack.

• At the bootstrapping phase the protocol fee will be zero.

• In the future, there will be 10% protocol fees on the yield incurred.

The v1 of stTAO will be using Taobridge to bridge users’ wTAO back to Bittensor’s Finney Network.

A Liquidity Pool will be introduced to allow users to directly buy stTAO on Uniswap after launch of v1. We will incentivise this with fees accrued from the Tensorplex Validator.