# Problem Statement

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.
