Miner as Smart Contract

In the traditional DEX setting, in order to incentivise capital into the liquidity pool, protocol incentives (which are usually inflationary in nature) is directed to the LPs. In more advanced DEX, the protocol tokens will also be used to further boost additional incentives through voting which will direct the boosted emissions into gauges that points to their respective liquidity pools.

In Backprop Subnet, we use the Miner as an instance to represent the eligibility for a gauge to receive Bittensor emissions. Pool Creators can choose to register the gauge of their LP onto the subnet, in which a new Miner in the form of smart contract will be created to replace the existing non-immune miner with the lowest incentives. The incentives of a miner in Backprop Subnet is determined by the relative proportion of votes directed to the gauge.

Backprop Subnet represents our innovative approach in leveraging Bittensor incentives landscape to tackle the same set of DeFi problems and pain points for other existing protocols. For the first time, user can also “mine” Bittensor incentives by providing liquidity to the pools where their gauge is incentivised by an active miner on Backprop Subnet. We believe this will invite a new wave of capital inflow into the Bittensor ecosystem.