Subnet

TensorUSD Subnet : https://github.com/TensorUSD/tensorUSD-subnet

The Subnet Side is the AI-driven core of the TAO-Backed Stablecoin ($TUSDT$) project, leveraging the Bittensor network's architecture to provide stability, liquidity, and security.

It is built upon a dedicated Bittensor subnet and utilizes the recent Dynamic TAO ($dTAO$) upgrade.

1. SUSD Token Mechanics

The Subnet Side introduces the second token in the dual-layer architecture: the SUSD token.

• Token Nature: $SUSD$ is a native subnet token with a floating market value.

• Deep Liquidity: It is designed to provide deep liquidity and decentralized market-making through $AI$-powered validators and miners.

• Primary Constraint: The system enforces a crucial economic constraint: the market capitalization of $SUSD$ must be greater than or equal to the market capitalization of $TUSDT$.

2. Core Stability Mechanism (Miners and Validators)

The stability of the system is outsourced to the competitive intelligence of the Bittensor network:

• Miners (Decentralized Market Makers - DMMs): Miners are incentivized to maintain the $SUSD:TUSDT$ peg. They achieve this through algorithmic trading, which corrects any deviations in the internal price peg.

• Validators: Validators are responsible for benchmarking miner performance. They use $AI$ models to ensure oracle accuracy and peg stability.

3. Economic Engine (Dynamic TAO Integration)

The $Subnet Side$ is powered by the Bittensor native economic model:

• Incentives: The protocol directly benefits from the $dTAO$ design, which allocates 18% of $TAO$ emissions to subnet incentives. This creates a powerful economic engine for the $SUSD$ subnet.

• Deflationary Pressure: $SUSD$ subnet registration fees contribute to a deflationary pressure on $TAO$ supply.

4. AI-Enhanced Oracle Layer

The $Subnet Side$ provides a secondary, decentralized oracle system for security:

• Second Layer Security: It acts as a second layer of oracle security alongside $Chainlink$.

• Anomaly Detection: Validators and miners run $AI$ models for price prediction and anomaly detection. This decentralized validation system cross-references Chainlink data, enhancing security and preventing single points of failure.

Fully Onchain Algorithmic Stablecoin in Bittensor powered By Bittensor Subnet