TAO Top 10 Farm

This strategy explains how to configure and interact with the TAO Top 10 Strategy. The strategy is designed to distribute deposited TAO across the highest performing validator subnets on the Bittensor network. Stakeholders will learn how to deposit TAO, define validator hotkeys with weightings, and manage withdrawals. To begin using the strategy, the farm owner must provide a list of validator hotkeys along with allocation ratios. Once configured, any TAO deposited into the strategy will be automatically staked to the specified validators, favoring those ranked in the top 10 subnets by Bittensor’s performance metrics. Staking rewards are credited automatically by the network and reflected in the user’s position. Withdrawals trigger proportional unstaking across all validators based on the configured weights. This section covers the setup process, deposit and withdrawal mechanics, validator management and benefits required to operate the TAO Top 10 Strategy effectively.

Technical Flow

This section provides information on how the strategy operates, guiding you through validator selection, staking mechanics, reward handling, and optional rebalancing. As a user or integrator, you will follow the outlined flow to ensure optimal usage and understanding of the system.

Key flow

1. Validator Selection & Weighting

You will begin by configuring a set of validator hotkeys—each represented by a unique 32-byte Substrate public key. For each validator, you must assign a ratio that defines its weight in the staking distribution.

• The strategy computes the sum of all ratios to determine the total weight.

• Each validator’s share of TAO is then calculated as a proportion of its ratio relative to this total.

To ensure validator quality, off-chain indexing oracles can be used to preselect the top 10 subnets based on performance and alpha values. This ensures that only high-performing validators receive stake allocations.

1. Staking Process (Deploy Liquidity)

When you initiate the deployLiquidity function:

• The strategy will automatically compute how much TAO each validator should receive based on the configured ratios.

• It then invokes Bittensor’s addStake precompile for each validator, allocating the correct amount of TAO.

• Internally, the strategy maintains a record of how much TAO is staked per validator and tracks the overall total staked.

1. Withdrawal Process

When a withdrawal is requested:

• The strategy will proportionally remove stakes from each validator, preserving the initial ratio-based allocation logic.

• The unstaked TAO is then returned to the Farm contract through a native transfer.

• This ensures that any withdrawal maintains fairness and reflects the current state of validator allocations.

1. Yield & Rewards

Rewards are automatically managed by Bittensor’s protocol:

• You do not need to manually claim rewards. Yield is reflected in the increasing staked balances.

• The strategy provides visibility into staking performance by exposing the amount of TAO staked per validator.

• This data can be used to power dashboards, performance metrics, or for calculating fees and revenue distribution.

1. Dynamic Rebalancing (Optional)

You have the ability to rebalance validator weights based on real time performance metrics:

• Validators can be added or removed.

• Ratios can be updated to reflect changes in validator reliability or network conditions.

• Rebalancing operations redistribute existing stakes based on the new configuration, ensuring maximum efficiency without needing to fully withdraw and redeploy liquidity.

Benefits

Outlines the key benefits of the strategy you are implementing. By following this approach, you will optimise yield, maintain decentralised control over validator management, and ensure transparency within the Dexponent Protocol framework.

1. Optimized Yield: You will direct TAO allocations to the top 10 performing subnets, as determined by current validator reward metrics on Bittensor. This ensures that your farm captures the highest possible validator rewards at any given time.

2. Decentralised Validator Management: As a farm owner, you will be able to adjust your validator allocations based on real time subnet performance. This adaptability enables your strategy to remain efficient and responsive to changing network conditions.

3. Transparent Yield Monitoring: You will have access to detailed analytics that track both individual validator stakes and aggregate yield performance. These insights empower you to make informed decisions and continuously optimize your validator portfolio.

4. Seamless Integration: By using the standard FarmStrategy interface within the Dexponent Protocol, you will ensure compatibility and operational smoothness. The strategy supports straightforward deposit, withdrawal, and yield management functions, requiring no additional custom integrations or overhead.