> For the complete documentation index, see [llms.txt](https://docs.tensorplex.ai/tensorplex-docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.tensorplex.ai/tensorplex-docs/tensorplex-lst/introduction.md). # Introduction ## 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. --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter, and the optional `goal` query parameter: ``` GET https://docs.tensorplex.ai/tensorplex-docs/tensorplex-lst/introduction.md?ask=&goal= ``` `ask` is the immediate question: it should be specific, self-contained, and written in natural language. `goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.