With the amount of new subnets being added it can be hard to get up to date information across all subnets, so data may be slightly out of date from time to time
With the amount of new subnets being added it can be hard to get up to date information across all subnets, so data may be slightly out of date from time to time
TaoFi (SN10) is a suite of decentralized finance (DeFi) protocols built on the Bittensor network – a decentralized AI platform. Its core mission is to bring essential financial infrastructure (stablecoins, exchanges, lending, etc.) into the Bittensor ecosystem, thereby unlocking liquidity and new use cases for AI-driven applications. In simpler terms, TaoFi serves as “the financial layer for decentralized AI”, bridging the gap between Bittensor’s AI subnets and the wider crypto economy. By introducing DeFi primitives on Bittensor, TaoFi enables both human users and AI agents to easily participate in economic activities like trading, staking, and lending within the network.
A major problem TaoFi addresses is that prior to its launch, Bittensor lacked basic DeFi tools – for example, there was no native stablecoin or DEX, making it difficult to bring outside liquidity into the ecosystem. TaoFi solves this by providing a TAO-backed stablecoin, a decentralized exchange, and other financial products directly on Bittensor’s EVM-compatible chain (called Subtensor). This allows value (like USD liquidity) to flow into Bittensor and be used for funding AI subnets, rewarding participants, and more. In essence, TaoFi makes Bittensor a more self-contained economy: users can bridge assets (like USDC) into Bittensor, swap into Bittensor’s native token (TAO) or any subnet token, stake for yield, and even borrow or lend – all without leaving the network.
Crucially, TaoFi leverages Bittensor’s unique decentralized AI infrastructure to optimize these financial services. Subnet 10 (SN10) itself runs an on-chain algorithmic engine where miners (AI models) compete to provide the best yield strategies and liquidity provisioning, while validators rank their performance. This was originally developed under the name “Sturdy” and continues under TaoFi to maximize returns for users. For example, SN10 incentivizes miners to supply liquidity to the TAO-USDC pool on TaoFi; miners that manage liquidity more profitably (i.e. earning more swap fees) get higher rewards. This “DeFi + AI” approach (dubbed DeFAI) means that TaoFi’s pools and strategies are continually optimized in real-time by decentralized AI, rather than by static algorithms. The end result is that liquidity is allocated efficiently and yields are maximized automatically, benefiting the entire Bittensor ecosystem by deepening liquidity and improving user returns.
TaoFi (SN10) is a suite of decentralized finance (DeFi) protocols built on the Bittensor network – a decentralized AI platform. Its core mission is to bring essential financial infrastructure (stablecoins, exchanges, lending, etc.) into the Bittensor ecosystem, thereby unlocking liquidity and new use cases for AI-driven applications. In simpler terms, TaoFi serves as “the financial layer for decentralized AI”, bridging the gap between Bittensor’s AI subnets and the wider crypto economy. By introducing DeFi primitives on Bittensor, TaoFi enables both human users and AI agents to easily participate in economic activities like trading, staking, and lending within the network.
A major problem TaoFi addresses is that prior to its launch, Bittensor lacked basic DeFi tools – for example, there was no native stablecoin or DEX, making it difficult to bring outside liquidity into the ecosystem. TaoFi solves this by providing a TAO-backed stablecoin, a decentralized exchange, and other financial products directly on Bittensor’s EVM-compatible chain (called Subtensor). This allows value (like USD liquidity) to flow into Bittensor and be used for funding AI subnets, rewarding participants, and more. In essence, TaoFi makes Bittensor a more self-contained economy: users can bridge assets (like USDC) into Bittensor, swap into Bittensor’s native token (TAO) or any subnet token, stake for yield, and even borrow or lend – all without leaving the network.
Crucially, TaoFi leverages Bittensor’s unique decentralized AI infrastructure to optimize these financial services. Subnet 10 (SN10) itself runs an on-chain algorithmic engine where miners (AI models) compete to provide the best yield strategies and liquidity provisioning, while validators rank their performance. This was originally developed under the name “Sturdy” and continues under TaoFi to maximize returns for users. For example, SN10 incentivizes miners to supply liquidity to the TAO-USDC pool on TaoFi; miners that manage liquidity more profitably (i.e. earning more swap fees) get higher rewards. This “DeFi + AI” approach (dubbed DeFAI) means that TaoFi’s pools and strategies are continually optimized in real-time by decentralized AI, rather than by static algorithms. The end result is that liquidity is allocated efficiently and yields are maximized automatically, benefiting the entire Bittensor ecosystem by deepening liquidity and improving user returns.
TaoFi comprises several interlocking products and technical components that together form a full DeFi stack on Bittensor:
TAO USD (taoUSD) Stablecoin & Bridge: TaoFi created Bittensor’s first native stablecoin, taoUSD, which is pegged 1:1 to USD and backed by assets off-chain. Users mint taoUSD by bridging USDC from Ethereum (or other chains) into Bittensor: you deposit USDC on Ethereum, and through a Hyperlane-powered bridge, an equal amount of taoUSD is minted on Bittensor EVM. All bridged USDC is held in reserve, making taoUSD fully collateralized. At launch, the bridge was capped at $10M TVL for safety. Notably, Hyperlane handles the cross-chain communication, and TaoFi’s bridge charges no fees besides gas. (In fact, users bridging ≥100 USDC automatically receive a small TAO airdrop to cover gas on Bittensor.) TaoFi plans to expand this stablecoin bridge to additional networks beyond Ethereum – it already supports the Base L2 chain, and more chains/asset support are planned. The stablecoin taoUSD provides a reliable USD-denominated liquidity for the Bittensor economy, enabling trading and lending in a stable unit of account.
TaoFi Swap (Decentralized Exchange): To enable trading on Bittensor, TaoFi deployed the Uniswap V3 protocol onto the Bittensor EVM. The primary trading pair launched is TAO/USDC, so users can permissionlessly swap between Bittensor’s native token TAO and USD liquidity (taoUSD/USDC). This essentially bootstrapped a DEX where anyone can buy or sell TAO on-chain without needing a centralized exchange. The TAO-USDC pool uses a 0.3% swap fee, all of which goes to liquidity providers (LPs) as an incentive. Users can also provide liquidity to this pool by depositing TAO and USDC – Uniswap V3 allows concentrated liquidity, meaning LPs choose a price range to allocate their funds. For example, one could add USDC liquidity only in the TAO price range $400–450, effectively acting as a limit order. Subnet 10’s AI miners come into play here by optimizing how liquidity is provided; the SN10 miners compete to adjust liquidity ranges or allocations to maximize trading fees, and those whose positions earn the most fees are rewarded by the network. This ensures the DEX’s liquidity is dynamically managed for high capital efficiency. TaoFi is expected to introduce additional trading pairs and specialized tools for LPs over time, further expanding DEX functionality.
Liquid Staking (sTAO): TaoFi offers a liquid staking derivative for TAO called sTAO (or stTAO). Users can stake their TAO through TaoFi’s staking interface and receive sTAO tokens 1:1. Under the hood, the TAO is delegated to Bittensor’s root network validators, and as those staked TAO earn rewards from Bittensor’s consensus (i.e. new TAO issuance for validators), the value of sTAO increases over time. In practice, sTAO is designed to appreciate relative to TAO, reflecting accumulated staking rewards – this is implemented by rebasing or increasing the sTAO balance over time. Users can at any time unstake to convert sTAO back to regular TAO at a 1:1 rate (plus any yield accrued). This liquid staking approach gives TAO holders the best of both worlds: they continue earning staking yield without locking up their tokens, since sTAO is a freely transferable token. It can even be used in DeFi – for example, sTAO can be provided as liquidity or used as collateral (see below) while still earning staking rewards. TaoFi’s team runs a validator (dubbed the “Sturdy Validator”) which many sTAO tokens are delegated to by default, ensuring stakers earn reliable rewards. Overall, sTAO increases network participation by making TAO staking more accessible and liquid, similar to how projects like Lido finance liquid staking on Ethereum.
Cross-Chain Subnet Token Swaps: One of TaoFi’s most powerful features is enabling cross-chain swaps that let users on external chains buy Bittensor subnet tokens in one click. In August 2025, TaoFi launched a mechanism for Base chain (an Ethereum L2) users to directly acquire any Bittensor subnet’s token using assets like USDC, ETH, or USDT. Under the hood, this is a complex four-step atomic swap automated by TaoFi: (1) the user’s token on Base is first swapped into USDC, (2) that USDC is bridged into Bittensor (minting taoUSD), (3) the USDC/taoUSD is swapped for TAO on Bittensor via the TAO-USDC pool, and (4) that TAO is used to purchase the target subnet’s native token via Bittensor’s canonical staking interface (a precompile that stakes TAO for subnet tokens). All of this happens behind one user transaction. The result is the user ends up with, say, SNX (Subnet X’s token) on Bittensor EVM, in a single step from Base – no manual bridging or multiple swaps needed. Conversely, selling a subnet token back to Base USDC is similarly streamlined. Notably, TaoFi’s use of Hyperlane’s Interchain Accounts allows the Base user’s wallet to execute actions on Bittensor EVM remotely during this process. This cross-chain swap service charges a modest 0.1% fee for using the TaoFi interface, but 100% of that fee can be earned by community members through referral links. Importantly, tokens bought in this way are not “wrapped” – they are the native subnet tokens living on Bittensor, and they automatically earn whatever staking or usage rewards that token normally would. (For example, if one buys a subnet’s token that yields AI rewards, those rewards accrue normally via a default validator stake.) This innovation dramatically lowers the barrier to entry for new investors to support Bittensor’s AI subnets, since one no longer needs a Bittensor wallet or TAO to get started. TaoFi essentially acts as a bridge between the entire EVM multichain world and Bittensor, and the team has hinted at expanding beyond Base to other chains like Solana in the future for subnet token purchases.
Lending & Borrowing Protocol: In September 2025, TaoFi introduced a lending/borrowing platform for TAO (leveraging tech from Sturdy Finance). This allows TAO holders to borrow stablecoins against their staked TAO and, conversely, lets others lend stablecoins to earn yield. In practice, a user can deposit their sTAO (staked TAO) as collateral and take a loan of USDC (taoUSD) against it, maintaining exposure to TAO’s upside while accessing liquidity. On the flip side, users with spare USDC can lend into the protocol to earn interest. Uniquely, this design follows Sturdy’s model of “yield-backed loans” – borrowers pay 0% interest out of pocket, and lenders instead earn yield sourced from the borrower’s collateral rewards. In other words, the staking yield that the locked TAO generates (plus any additional incentives) is passed to the USDC lenders as their return, enabling interest-free borrowing for the TAO holder (as long as they accept their staking rewards go to the lender). This is beneficial for long-term TAO holders: they can get liquidity without selling their TAO and without incurring interest, while lenders get a “supercharged” yield (higher than ordinary stablecoin rates) derived from TAO staking rewards. The entire system is decentralized and powered by SN10’s optimization engine – similar to how SN10 optimized yield allocations for Sturdy’s aggregators, it can also optimize parameters like collateralization levels or yield distribution to ensure stability and maximize efficiency. The lending product is powered by the Sturdy subnet backend (the AI models finding optimal strategies) and uses Pyth oracles for price feeds (to safely calculate TAO collateral value). This marked another key piece of infrastructure: TAO can now be used as collateral in DeFi, and stablecoin holders have a new avenue to earn yield within Bittensor’s economy.
Technically, the TaoFi smart contracts (for the DEX, bridge, staking, etc.) are deployed on Subtensor (the Bittensor blockchain’s EVM). The code is open source and available for review. Security has been a focus – Hyperlane’s audited framework is used for bridging, and TaoFi has undergone external audits (as noted in its documentation). By combining blockchain DeFi protocols with Bittensor’s AI-driven subnet (SN10), TaoFi’s architecture is quite novel: it’s not just another DeFi platform, but one where autonomous AI agents help govern liquidity and yield. This synergy of AI and DeFi enables what one investor called “advancing Bittensor’s mission of creating machine intelligence owned by everyone” – TaoFi provides the financial tools to support that mission.
TaoFi comprises several interlocking products and technical components that together form a full DeFi stack on Bittensor:
TAO USD (taoUSD) Stablecoin & Bridge: TaoFi created Bittensor’s first native stablecoin, taoUSD, which is pegged 1:1 to USD and backed by assets off-chain. Users mint taoUSD by bridging USDC from Ethereum (or other chains) into Bittensor: you deposit USDC on Ethereum, and through a Hyperlane-powered bridge, an equal amount of taoUSD is minted on Bittensor EVM. All bridged USDC is held in reserve, making taoUSD fully collateralized. At launch, the bridge was capped at $10M TVL for safety. Notably, Hyperlane handles the cross-chain communication, and TaoFi’s bridge charges no fees besides gas. (In fact, users bridging ≥100 USDC automatically receive a small TAO airdrop to cover gas on Bittensor.) TaoFi plans to expand this stablecoin bridge to additional networks beyond Ethereum – it already supports the Base L2 chain, and more chains/asset support are planned. The stablecoin taoUSD provides a reliable USD-denominated liquidity for the Bittensor economy, enabling trading and lending in a stable unit of account.
TaoFi Swap (Decentralized Exchange): To enable trading on Bittensor, TaoFi deployed the Uniswap V3 protocol onto the Bittensor EVM. The primary trading pair launched is TAO/USDC, so users can permissionlessly swap between Bittensor’s native token TAO and USD liquidity (taoUSD/USDC). This essentially bootstrapped a DEX where anyone can buy or sell TAO on-chain without needing a centralized exchange. The TAO-USDC pool uses a 0.3% swap fee, all of which goes to liquidity providers (LPs) as an incentive. Users can also provide liquidity to this pool by depositing TAO and USDC – Uniswap V3 allows concentrated liquidity, meaning LPs choose a price range to allocate their funds. For example, one could add USDC liquidity only in the TAO price range $400–450, effectively acting as a limit order. Subnet 10’s AI miners come into play here by optimizing how liquidity is provided; the SN10 miners compete to adjust liquidity ranges or allocations to maximize trading fees, and those whose positions earn the most fees are rewarded by the network. This ensures the DEX’s liquidity is dynamically managed for high capital efficiency. TaoFi is expected to introduce additional trading pairs and specialized tools for LPs over time, further expanding DEX functionality.
Liquid Staking (sTAO): TaoFi offers a liquid staking derivative for TAO called sTAO (or stTAO). Users can stake their TAO through TaoFi’s staking interface and receive sTAO tokens 1:1. Under the hood, the TAO is delegated to Bittensor’s root network validators, and as those staked TAO earn rewards from Bittensor’s consensus (i.e. new TAO issuance for validators), the value of sTAO increases over time. In practice, sTAO is designed to appreciate relative to TAO, reflecting accumulated staking rewards – this is implemented by rebasing or increasing the sTAO balance over time. Users can at any time unstake to convert sTAO back to regular TAO at a 1:1 rate (plus any yield accrued). This liquid staking approach gives TAO holders the best of both worlds: they continue earning staking yield without locking up their tokens, since sTAO is a freely transferable token. It can even be used in DeFi – for example, sTAO can be provided as liquidity or used as collateral (see below) while still earning staking rewards. TaoFi’s team runs a validator (dubbed the “Sturdy Validator”) which many sTAO tokens are delegated to by default, ensuring stakers earn reliable rewards. Overall, sTAO increases network participation by making TAO staking more accessible and liquid, similar to how projects like Lido finance liquid staking on Ethereum.
Cross-Chain Subnet Token Swaps: One of TaoFi’s most powerful features is enabling cross-chain swaps that let users on external chains buy Bittensor subnet tokens in one click. In August 2025, TaoFi launched a mechanism for Base chain (an Ethereum L2) users to directly acquire any Bittensor subnet’s token using assets like USDC, ETH, or USDT. Under the hood, this is a complex four-step atomic swap automated by TaoFi: (1) the user’s token on Base is first swapped into USDC, (2) that USDC is bridged into Bittensor (minting taoUSD), (3) the USDC/taoUSD is swapped for TAO on Bittensor via the TAO-USDC pool, and (4) that TAO is used to purchase the target subnet’s native token via Bittensor’s canonical staking interface (a precompile that stakes TAO for subnet tokens). All of this happens behind one user transaction. The result is the user ends up with, say, SNX (Subnet X’s token) on Bittensor EVM, in a single step from Base – no manual bridging or multiple swaps needed. Conversely, selling a subnet token back to Base USDC is similarly streamlined. Notably, TaoFi’s use of Hyperlane’s Interchain Accounts allows the Base user’s wallet to execute actions on Bittensor EVM remotely during this process. This cross-chain swap service charges a modest 0.1% fee for using the TaoFi interface, but 100% of that fee can be earned by community members through referral links. Importantly, tokens bought in this way are not “wrapped” – they are the native subnet tokens living on Bittensor, and they automatically earn whatever staking or usage rewards that token normally would. (For example, if one buys a subnet’s token that yields AI rewards, those rewards accrue normally via a default validator stake.) This innovation dramatically lowers the barrier to entry for new investors to support Bittensor’s AI subnets, since one no longer needs a Bittensor wallet or TAO to get started. TaoFi essentially acts as a bridge between the entire EVM multichain world and Bittensor, and the team has hinted at expanding beyond Base to other chains like Solana in the future for subnet token purchases.
Lending & Borrowing Protocol: In September 2025, TaoFi introduced a lending/borrowing platform for TAO (leveraging tech from Sturdy Finance). This allows TAO holders to borrow stablecoins against their staked TAO and, conversely, lets others lend stablecoins to earn yield. In practice, a user can deposit their sTAO (staked TAO) as collateral and take a loan of USDC (taoUSD) against it, maintaining exposure to TAO’s upside while accessing liquidity. On the flip side, users with spare USDC can lend into the protocol to earn interest. Uniquely, this design follows Sturdy’s model of “yield-backed loans” – borrowers pay 0% interest out of pocket, and lenders instead earn yield sourced from the borrower’s collateral rewards. In other words, the staking yield that the locked TAO generates (plus any additional incentives) is passed to the USDC lenders as their return, enabling interest-free borrowing for the TAO holder (as long as they accept their staking rewards go to the lender). This is beneficial for long-term TAO holders: they can get liquidity without selling their TAO and without incurring interest, while lenders get a “supercharged” yield (higher than ordinary stablecoin rates) derived from TAO staking rewards. The entire system is decentralized and powered by SN10’s optimization engine – similar to how SN10 optimized yield allocations for Sturdy’s aggregators, it can also optimize parameters like collateralization levels or yield distribution to ensure stability and maximize efficiency. The lending product is powered by the Sturdy subnet backend (the AI models finding optimal strategies) and uses Pyth oracles for price feeds (to safely calculate TAO collateral value). This marked another key piece of infrastructure: TAO can now be used as collateral in DeFi, and stablecoin holders have a new avenue to earn yield within Bittensor’s economy.
Technically, the TaoFi smart contracts (for the DEX, bridge, staking, etc.) are deployed on Subtensor (the Bittensor blockchain’s EVM). The code is open source and available for review. Security has been a focus – Hyperlane’s audited framework is used for bridging, and TaoFi has undergone external audits (as noted in its documentation). By combining blockchain DeFi protocols with Bittensor’s AI-driven subnet (SN10), TaoFi’s architecture is quite novel: it’s not just another DeFi platform, but one where autonomous AI agents help govern liquidity and yield. This synergy of AI and DeFi enables what one investor called “advancing Bittensor’s mission of creating machine intelligence owned by everyone” – TaoFi provides the financial tools to support that mission.
Sam Forman – Co-Founder
Sam’s background at Stanford University in cryptography, AI research, and decentralized finance allowed him to identify a unique challenge in the DeFi space, specifically around the suboptimal allocation of funds in yield-generating pools. Before SN10, Sam was involved in DeFi protocols, with experience in creating aggregators that distribute capital across various pools in an optimal manner, but with a manual approach. Over time, SN10 evolved into a more automated system using crowdsourcing for improved scalability.
Syeam Bin Abdullah – Software Development Lead
Driven by an insatiable curiosity and a passion for innovation, he has charted his own course as a self-directed learner, constantly pushing the boundaries of what’s possible. From his early foray into programming in middle school to his recent exploration of the crypto space, he has cultivated a diverse skill set and a deep understanding of many technologies. He is currently immersed in contributing to open-source projects, competing in hackathons, and staying on top of the latest developments in machine learning and artificial intelligence. Alongside these pursuits, he is actively engaged in freelance projects and on the hunt for software engineering internships.
Sam Forman – Co-Founder
Sam’s background at Stanford University in cryptography, AI research, and decentralized finance allowed him to identify a unique challenge in the DeFi space, specifically around the suboptimal allocation of funds in yield-generating pools. Before SN10, Sam was involved in DeFi protocols, with experience in creating aggregators that distribute capital across various pools in an optimal manner, but with a manual approach. Over time, SN10 evolved into a more automated system using crowdsourcing for improved scalability.
Syeam Bin Abdullah – Software Development Lead
Driven by an insatiable curiosity and a passion for innovation, he has charted his own course as a self-directed learner, constantly pushing the boundaries of what’s possible. From his early foray into programming in middle school to his recent exploration of the crypto space, he has cultivated a diverse skill set and a deep understanding of many technologies. He is currently immersed in contributing to open-source projects, competing in hackathons, and staying on top of the latest developments in machine learning and artificial intelligence. Alongside these pursuits, he is actively engaged in freelance projects and on the hunt for software engineering internships.
TaoFi’s development trajectory through 2024–2025 has been rapid, and the roadmap ahead focuses on expanding its DeFi offerings and cross-chain reach. Here’s a breakdown of past milestones and future plans:
Q4 2024 – Q1 2025 (Project Genesis): The concept of TaoFi took shape as Sturdy’s team decided to pivot towards a broader DeFi platform for Bittensor. In February 2025, TaoFi officially announced its formation and completed a strategic funding round led by DCG (with Pantera, Taostats, etc.). This provided the resources to build out core products. Around the same time, Bittensor’s protocol upgraded to support subnet tokens (dTAO system), setting the stage for TaoFi’s launch on the new EVM chain.
Q1 – Q2 2025 (Core DeFi Launches): TaoFi’s first product to go live was the stablecoin bridge and taoUSD. In late March 2025, the team launched the Hyperlane-powered bridge connecting Ethereum to Bittensor EVM, allowing users to mint taoUSD by depositing USDC. This had an initial TVL cap of $10M as a guarded launch. Shortly after, TaoFi introduced sTAO (staked TAO) on Bittensor EVM – enabling users to stake TAO and receive liquid sTAO tokens (the documentation for staking was published around this time, ~April 2025). By mid-2025, the Uniswap V3 DEX was deployed on Bittensor EVM, and the primary TAO/USDC pool was opened for trading and liquidity provision. This made it possible, for the first time, to trade TAO on-chain with deep liquidity. Throughout this period, Subnet 10’s AI miners were actively managing strategies (initially focusing on optimizing Sturdy’s lending aggregator, and then liquidity provisioning once the DEX launched).
Q3 2025 (Cross-Chain Expansion & Lending): A major milestone came in August 2025 when TaoFi unveiled its cross-chain subnet token swap interface. They first integrated with Coinbase’s Base network, allowing Base users to seamlessly swap assets (USDC/ETH) into any of Bittensor’s 128 subnet tokens via TaoFi’s platform. This effectively bridged Bittensor to a large DeFi user base on Ethereum L2 and eliminated previous friction of needing a specialized wallet or TAO to invest in subnets. Following this, in September 2025, TaoFi rolled out the Lending & Borrowing feature on Bittensor. This “Powered by Sturdy” lending protocol enabled users to borrow USDC against staked TAO collateral and for others to lend USDC for yield. The launch was well-received, as it introduced a much-needed borrowing market for TAO (e.g., allowing TAO holders to unlock liquidity without selling). Partnerships were also formed around this time for oracles and data feeds – for instance, Pyth Network integrated price feeds for TAO to support the lending platform (tweeting about the TAO lending launch on Sep 24, 2025).
Late 2025 (Improving Liquidity & New Assets): Going into the end of 2025, the TaoFi team is focusing on broadening the liquidity and asset support on their platform. They plan to add more trading pairs on the DEX (beyond TAO/USDC) and release advanced tools for liquidity providers – potentially including AI-managed liquidity vaults or automated range adjustments (leveraging SN10). The stablecoin bridge will likely onboard additional origin chains (such as Solana, Avalanche, etc.), so that users from those ecosystems can directly bridge into Bittensor via taoUSD. The team has already “teased” support for buying subnet tokens from Solana and others, indicating cross-chain functionality will keep expanding. Additionally, there is an ongoing effort to refine the MetaMask integration and user experience: as of September, MetaMask users can interact with TaoFi directly (via Base), and this will be extended to other wallets and networks to make accessing Bittensor truly one-click.
2026 and Beyond (Future Plans): Looking further ahead, TaoFi aims to become a comprehensive financial hub for all things Bittensor. According to Messari research, future plans include launching perpetual trading markets (perps) and more sophisticated derivatives tied to Bittensor’s assets. This could allow users to take leveraged positions on subnet tokens or hedge risk – a natural next step after spot trading and lending are in place. The lending platform may be expanded into a full money-market supporting not just TAO but other collateral types (for instance, using subnet tokens or even tokenized real-world assets as collateral, if those become available on Bittensor). The team’s vision of “AI agents using DeFi” also hints that TaoFi will develop APIs and frameworks for AI agents (deployed on Bittensor subnets) to autonomously trade, lend, or stake via TaoFi’s protocols. In short, we can expect deeper integration between AI and finance – e.g. algorithmic strategies from SN10 could evolve into on-chain hedge funds or autonomous market makers that live on Bittensor.
Continuous Decentralization & Governance: As TaoFi matures, another roadmap focus is decentralization of control. The team has mentioned plans for a governance token or DAO for TaoFi (this was hinted when it was Sturdy, with a STRDY token for governance). It’s plausible that TaoFi will introduce a governance mechanism to allow the community (possibly TAO holders or a new token) to vote on parameters like interest rates, fee levels, or which new features to prioritize. Given Bittensor’s ethos, TaoFi will likely ensure that the community of TAO and subnet token holders has a say in the financial layer’s evolution.
Milestones Achieved: It’s worth noting some quantitative milestones to date: By early 2025, Sturdy’s SN10 had already optimized over $125M in deposits within Bittensor, and later crossed $175M, demonstrating significant usage. TaoFi’s bridge brought in fresh liquidity (approaching its $10M cap in stablecoins), and the TAO market itself grew (TAO’s market cap was over $3B in Sep 2025). The launch of TaoFi’s MetaMask integration in Sept 2025 was highlighted as a top story, expected to drive mainstream adoption by simplifying access to 128 AI subnets via familiar wallets. Each successful launch – stablecoin, DEX, cross-chain swap, lending – has lowered barriers and increased liquidity in the Bittensor ecosystem, which is exactly in line with TaoFi’s roadmap goals.
In summary, TaoFi’s roadmap is about building out the full financial suite for Bittensor and continuously enhancing accessibility. The project progressed from foundational pieces (stablecoin, DEX, staking) in early-mid 2025, to more user-friendly cross-chain tools and lending by late 2025. Going forward, expect more assets, more chains, more financial instruments (like derivatives), and increased involvement of both the community and AI agents in managing the ecosystem. All these efforts converge on TaoFi’s long-term vision: a thriving, liquid AI-finance ecosystem on Bittensor, where decentralized AI networks and DeFi capital synergize to fuel each other’s growth.
TaoFi’s development trajectory through 2024–2025 has been rapid, and the roadmap ahead focuses on expanding its DeFi offerings and cross-chain reach. Here’s a breakdown of past milestones and future plans:
Q4 2024 – Q1 2025 (Project Genesis): The concept of TaoFi took shape as Sturdy’s team decided to pivot towards a broader DeFi platform for Bittensor. In February 2025, TaoFi officially announced its formation and completed a strategic funding round led by DCG (with Pantera, Taostats, etc.). This provided the resources to build out core products. Around the same time, Bittensor’s protocol upgraded to support subnet tokens (dTAO system), setting the stage for TaoFi’s launch on the new EVM chain.
Q1 – Q2 2025 (Core DeFi Launches): TaoFi’s first product to go live was the stablecoin bridge and taoUSD. In late March 2025, the team launched the Hyperlane-powered bridge connecting Ethereum to Bittensor EVM, allowing users to mint taoUSD by depositing USDC. This had an initial TVL cap of $10M as a guarded launch. Shortly after, TaoFi introduced sTAO (staked TAO) on Bittensor EVM – enabling users to stake TAO and receive liquid sTAO tokens (the documentation for staking was published around this time, ~April 2025). By mid-2025, the Uniswap V3 DEX was deployed on Bittensor EVM, and the primary TAO/USDC pool was opened for trading and liquidity provision. This made it possible, for the first time, to trade TAO on-chain with deep liquidity. Throughout this period, Subnet 10’s AI miners were actively managing strategies (initially focusing on optimizing Sturdy’s lending aggregator, and then liquidity provisioning once the DEX launched).
Q3 2025 (Cross-Chain Expansion & Lending): A major milestone came in August 2025 when TaoFi unveiled its cross-chain subnet token swap interface. They first integrated with Coinbase’s Base network, allowing Base users to seamlessly swap assets (USDC/ETH) into any of Bittensor’s 128 subnet tokens via TaoFi’s platform. This effectively bridged Bittensor to a large DeFi user base on Ethereum L2 and eliminated previous friction of needing a specialized wallet or TAO to invest in subnets. Following this, in September 2025, TaoFi rolled out the Lending & Borrowing feature on Bittensor. This “Powered by Sturdy” lending protocol enabled users to borrow USDC against staked TAO collateral and for others to lend USDC for yield. The launch was well-received, as it introduced a much-needed borrowing market for TAO (e.g., allowing TAO holders to unlock liquidity without selling). Partnerships were also formed around this time for oracles and data feeds – for instance, Pyth Network integrated price feeds for TAO to support the lending platform (tweeting about the TAO lending launch on Sep 24, 2025).
Late 2025 (Improving Liquidity & New Assets): Going into the end of 2025, the TaoFi team is focusing on broadening the liquidity and asset support on their platform. They plan to add more trading pairs on the DEX (beyond TAO/USDC) and release advanced tools for liquidity providers – potentially including AI-managed liquidity vaults or automated range adjustments (leveraging SN10). The stablecoin bridge will likely onboard additional origin chains (such as Solana, Avalanche, etc.), so that users from those ecosystems can directly bridge into Bittensor via taoUSD. The team has already “teased” support for buying subnet tokens from Solana and others, indicating cross-chain functionality will keep expanding. Additionally, there is an ongoing effort to refine the MetaMask integration and user experience: as of September, MetaMask users can interact with TaoFi directly (via Base), and this will be extended to other wallets and networks to make accessing Bittensor truly one-click.
2026 and Beyond (Future Plans): Looking further ahead, TaoFi aims to become a comprehensive financial hub for all things Bittensor. According to Messari research, future plans include launching perpetual trading markets (perps) and more sophisticated derivatives tied to Bittensor’s assets. This could allow users to take leveraged positions on subnet tokens or hedge risk – a natural next step after spot trading and lending are in place. The lending platform may be expanded into a full money-market supporting not just TAO but other collateral types (for instance, using subnet tokens or even tokenized real-world assets as collateral, if those become available on Bittensor). The team’s vision of “AI agents using DeFi” also hints that TaoFi will develop APIs and frameworks for AI agents (deployed on Bittensor subnets) to autonomously trade, lend, or stake via TaoFi’s protocols. In short, we can expect deeper integration between AI and finance – e.g. algorithmic strategies from SN10 could evolve into on-chain hedge funds or autonomous market makers that live on Bittensor.
Continuous Decentralization & Governance: As TaoFi matures, another roadmap focus is decentralization of control. The team has mentioned plans for a governance token or DAO for TaoFi (this was hinted when it was Sturdy, with a STRDY token for governance). It’s plausible that TaoFi will introduce a governance mechanism to allow the community (possibly TAO holders or a new token) to vote on parameters like interest rates, fee levels, or which new features to prioritize. Given Bittensor’s ethos, TaoFi will likely ensure that the community of TAO and subnet token holders has a say in the financial layer’s evolution.
Milestones Achieved: It’s worth noting some quantitative milestones to date: By early 2025, Sturdy’s SN10 had already optimized over $125M in deposits within Bittensor, and later crossed $175M, demonstrating significant usage. TaoFi’s bridge brought in fresh liquidity (approaching its $10M cap in stablecoins), and the TAO market itself grew (TAO’s market cap was over $3B in Sep 2025). The launch of TaoFi’s MetaMask integration in Sept 2025 was highlighted as a top story, expected to drive mainstream adoption by simplifying access to 128 AI subnets via familiar wallets. Each successful launch – stablecoin, DEX, cross-chain swap, lending – has lowered barriers and increased liquidity in the Bittensor ecosystem, which is exactly in line with TaoFi’s roadmap goals.
In summary, TaoFi’s roadmap is about building out the full financial suite for Bittensor and continuously enhancing accessibility. The project progressed from foundational pieces (stablecoin, DEX, staking) in early-mid 2025, to more user-friendly cross-chain tools and lending by late 2025. Going forward, expect more assets, more chains, more financial instruments (like derivatives), and increased involvement of both the community and AI agents in managing the ecosystem. All these efforts converge on TaoFi’s long-term vision: a thriving, liquid AI-finance ecosystem on Bittensor, where decentralized AI networks and DeFi capital synergize to fuel each other’s growth.
Huge thanks to Keith Singery (aka Bittensor Guru) for all of his fantastic work in the Bittensor community. Make sure to check out his other video/audio interviews by clicking HERE.
In this audio interview, Sam Forman from Sturdy joins the Keith to discuss Subnet 10. Sturdy utilizes their subnet as a crowdsourced yield optimization engine to enhance their lending protocol, setting a new benchmark for decentralized financial intelligence. Sam explains how he leverages Bittensor’s incentivization to deliver top returns to Sturdy’s users.
A big thank you to Tao Stats for producing these insightful videos in the Novelty Search series. We appreciate the opportunity to dive deep into the groundbreaking work being done by Subnets within Bittensor! Check out some of their other videos HERE.
In this session, the team behind the SN10 subnet discusses the innovative yield optimization and allocation system they’ve built within the Bittensor ecosystem. The focus is on how SN10 automates the allocation of assets across various DeFi pools, enhancing the efficiency of fund distribution through a decentralized and crowdsourced approach. The team highlights the subnet’s ability to handle both organic requests (from real DeFi applications) and synthetic requests (for testing and training purposes), using advanced simulations and real-world data to optimize yields. They also touch on their partnerships with leading DeFi protocols like Moro and Gauntlet, and the roadmap for integrating EVM compatibility, improving the user interface, and expanding SN10’s capabilities into broader financial applications. This discussion provides valuable insights into the future of decentralized finance and how SN10 is shaping the landscape for optimized asset management.