Problem Statement

TrustedStake Finance is a pioneering lending protocol meticulously designed to unlock liquidity within the Bittensor ecosystem.

Currently, holders of wTAO (wrapped versions of Bittensor’s native token, TAO) on the Ethereum blockchain are unable to capitalize on the substantial yield opportunities available to native TAO holders. TrustedStake mitigates this by creating staking solutions for wTAO, enabling holders to earn APY, similar to those who delegate TAO directly to validators.

Another major challenge for both wTAO and TAO holders is the inability to leverage their digital assets for liquidity without selling them. TrustedStake solves this by allowing TAO holders to use their tokens as collateral to mint a dollar-pegged stablecoin, taoUSD. This stablecoin can be used like any other Ethereum-based stablecoin to participate in DeFi dApps or other yield opportunities. The system offers dual benefits: it provides immediate liquidity to token holders while allowing them to retain ownership of their TAO tokens. TrustedStake bridges the gap between static asset holding and dynamic financial utility.

Importantly, TrustedStake charges no interest for minting or holding taoUSD. There is only a one-time 0.5% minting fee, after which holders can utilize the stablecoin indefinitely without paying any additional interest. The initial collateral (wTAO) remains securely locked in the protocol until the user chooses to redeem taoUSD to reclaim their tokens.

TrustedStake offers Delegate-as-a-Service (DaaS) for TAO holders. As Bittensor evolves to introduce dynamic TAO (dTAO) and subnet-specific delegation/validation rules, TrustedStake provides a comprehensive solution to optimize TAO yield across the ecosystem.