Sturdy (Subnet 10) is a specialized Bittensor subnetwork designed to function as a decentralized yield optimizer. Its primary purpose is to provide aggregators and, by extension, end-users with the most effective allocations among a whitelisted set of “silos” – essentially, yield-bearing assets or strategies. The core goal is to secure the best possible yields by fostering a competitive landscape where miners, acting as AI-driven strategy providers, continuously refine and offer superior yield optimization solutions.

Key objectives and functions include:

• Decentralized Yield Optimization: To move beyond traditional, centralized yield farming strategies by creating an open and competitive market for yield generation algorithms.
• AI-Driven Strategies: To harness the power of artificial intelligence, where miners develop and deploy sophisticated algorithms that dynamically allocate assets across various DeFi protocols and pools to maximize returns.
• Enhanced Capital Efficiency: To ensure that users’ capital is always working in the most efficient way possible by constantly seeking out and shifting to higher-performing yield opportunities.
• Real-World Asset Management: To bridge the gap between decentralized AI and tangible financial outcomes by managing actual assets on networks like Ethereum, as demonstrated by its immediate handling of significant asset allocations from its inception.

As noted in multiple announcements and official documentation, Sturdy is not merely a theoretical construct but a live system designed for practical application in the DeFi world. It aims to be a “game-changer” by making advanced, AI-powered yield optimization accessible and transparent.

Mechanism and Functionality

The Sturdy subnet operates on the foundational principles of the Bittensor network, which facilitates decentralized AI services through a system of miners and validators. Within Sturdy, this model is adapted for DeFi yield optimization:

• Miners (Strategy Providers): Miners on Subnet 10 are responsible for developing and submitting yield optimization strategies. These strategies are essentially algorithms designed to intelligently allocate assets across various whitelisted DeFi pools and protocols to achieve the highest possible yield. Their “computational power” or service is the effectiveness and ingenuity of these financial strategies.
• Validators (Performance Assessors): Validators play a crucial role in assessing the performance of the strategies submitted by miners. They provide incentives (in the form of TAO emissions or subnet-specific tokens) to those miners whose strategies demonstrate the highest and most consistent yields. The yield generated by a strategy serves as the ultimate benchmark for its evaluation.
• Competitive Environment: The subnet creates a continuous, competitive environment. Miners are incentivized to constantly innovate and improve their algorithms because better performance leads to greater rewards. This dynamic is intended to benefit the end-users by ensuring that the overall system gravitates towards the most effective yield optimization techniques available.
• Asset Allocation: Each yield optimizer (miner strategy) within the Sturdy Subnet operates with a predetermined set of strategies or focuses on specific asset types/pools. This ensures a degree of specialization and efficient asset allocation. The pools themselves often feature unique interest rate curves, which are critical data points for the miners’ algorithms in determining the most lucrative strategies.
• Real-World Integration: The outputs and strategies generated by the Sturdy subnet are designed to be harnessed by third-party applications and protocols. Sturdy Finance itself is the primary and first application to utilize the subnet, managing actual user deposits and allocating them based on the AI-driven insights from SN10. For instance, from its launch, the subnet was set to handle the allocation of over $10 million across various lending pools, a figure that grew to over $110 million by November 2024.

The product, therefore, is a decentralized intelligence layer for yield optimization. It provides a continuous stream of high-performing, AI-vetted strategies that can be integrated into DeFi protocols to manage user funds more effectively than static or manually managed approaches.

Technical Architecture

While deep, proprietary technical details of miners’ algorithms are not publicly disclosed (as this forms their competitive edge), the overall technical architecture of Sturdy (SN10) aligns with the Bittensor framework and incorporates specific DeFi elements:

• Bittensor Subnetwork: Sturdy operates as Subnet 10 on the main Bittensor network (NetUID 10). It also has a presence on the testnet (NetUID 104). This means it inherits the core functionalities of Bittensor, including its consensus mechanism (Yuma Consensus for overall network, though specifics of SN10 validation might vary), TAO tokenomics for incentives, and the miner/validator structure.
• SN10 2.0 Upgrade: As of late 2024 (highlighted in November 2024 updates), Sturdy launched SN10 2.0. This upgrade was aimed at making the subnet more scalable and efficient. Key improvements included enhanced performance, reduced latency, and an improved ability for the subnet to dynamically allocate assets for maximum yield. This suggests ongoing development and refinement of the underlying infrastructure.
• Smart Contracts & DeFi Primitives: The strategies developed by miners interact with various DeFi protocols, which means they must be compatible with smart contracts on networks like Ethereum. The subnet facilitates the management of assets in lending pools, liquidity pools, and other yield-generating DeFi primitives.
• AI/ML Models: Miners employ various AI and machine learning models to predict market movements, assess risk, and optimize asset allocation. The specifics of these models are the miners’ intellectual property.
• Data Feeds & Oracles: Effective yield optimization requires access to real-time and accurate data regarding market conditions, interest rates, token prices, and protocol health. While not explicitly detailed in all sources, a robust system would likely rely on oracles and various data feeds.
• Whitelisted Silos: The subnet operates with a set of “whitelisted silos” or yield-bearing assets/strategies. This implies a governance or curation process to ensure that miners are focusing on legitimate and reasonably secure DeFi opportunities, mitigating some risks.
• API and Integration Layer: For third-party applications like Sturdy Finance, Ondo, Yearn, and Pendle to utilize the subnet’s intelligence, there must be an API or integration layer that allows these protocols to receive allocation signals or directly interact with the strategies managed by SN10.
• Monitoring and Analytics: Tools like Taostats provide public visibility into the subnet’s performance, including financial data, registration details, owner information, and links to more detailed statistics (Metagraph, Hyperparameters, Miner Weights). Internally, validators and the Sturdy team would have more granular monitoring tools.