TAO-DXP Re-Stake Strategy

The TAO Boost Strategy, designed specifically for liquidity providers aiming to maximize yield by staking TAO on the Bittensor network. The strategy enhances staking performance through diversified validator engagement and integrates bonus restaking to further amplify returns. When you deposit TAO into the strategy contract, it automatically splits your tokens and stakes them across several selected validators. The actual staking happens through Bittensor’s built-in precompile contract, which handles everything on-chain.

Here's what you'll be doing with this strategy

1. Staking with Multiple Validators Your TAO will be divided and staked across different top-performing validators. This helps spread out risk and can improve overall staking rewards, rather than putting everything with just one validator.

2. Yield is Credited Automatically You don’t need to manually claim your staking rewards. The Bittensor network handles it off-chain and adds the yield to your account without needing you to call a harvest function.

3. Boosted Returns Through Bonus Restaking Any bonus you earn—like deposit rewards—will be automatically restaked into a system called the RootFarm. This gives you $vDXP tokens in return, which helps grow your overall yield even more.

4. Emergency Withdrawals & Validator Controls The strategy also includes tools for handling emergencies. If needed, farm owners can withdraw funds quickly or change the list of validators and how much is staked with each one.

Technical Benefits

Here's what you can expect from its architecture and operational design. This section guides you through the technical advantages integrated into the strategy:

1. Enhanced Yield Optimization You will benefit from automatic splitting of TAO deposits across multiple validators. The strategy is engineered to continuously restake accrued bonus DXP rewards, enabling you to capture both native staking rewards from Bittensor and on-chain bonus incentives. This dual-layer yield system is designed to maximize your overall return.

2. Diversification & Risk Management To reduce exposure to any single validator's performance, your stake will be programmatically distributed across a diversified set of validators. This approach minimizes risk and helps maintain more stable yield output over time.

3. Seamless Integration with the Dexponent Protocol The TAO Boost Strategy is built to be fully compatible with the Dexponent Protocol’s FarmStrategy interface. By participating, you are interacting with a strategy that natively restakes bonus DXP into the RootFarm contract. As a result, you will receive $vDXP tokens, which serve as your claim token representing your position and entitlement to accrued rewards.

4. Transparent Yield Attribution You will be able to clearly track your bonus yield on-chain through the restaking mechanism. While native Bittensor rewards are credited off-chain, the bonus DXP yield is transparently attributed via smart contract logic allowing you full visibility into the yield distribution tied to your deposited position.