Intro V2

Bittensor’s Community-owned DeFi SuperApp

This documentation aims to familiarize general users with Backprop Finance and also serve as a comprehensive guide for developers working with Backprop Finance.

Built by Tensorplex Labs, Backprop Finance is a decentralised exchange built on top of Bittensor, bridging DeFi with the Bittensor AI ecosystem. Backprop’s subnet dTAO token ensures that the DEX's value contributes directly to Bittensor, fostering a self-sustaining ecosystem.

Through Backprop Finance, you hold the power to partake in the trading of supercommodities — the foundational resources that will propel the next era of decentralised AI.

Problem Statement

Bittensor, despite being one of the leading AI x crypto protocols, has always been very daunting to most when it comes to buying and managing TAO investments. While we have previously built Tensorplex LST that empowers native EVM users to access and trade yields that are only attained through staking in Bittensor network, the complexity will only increase with the introduction of subnet tokens (more colloquially known as Dynamic TAO). It is no trivial task to reliably manage one’s exposure towards the subnets due to the intricate complexity of the underlying staking and emission mechanism under the Dynamic TAO regime.

Solution

Backprop Finance is pioneering to be Bittensor’s one-stop capital hub by combining Bittensor’s unique incentives landscape, vote-lock governance model specifically designed for the dTAO paradigm, and friendly user experience enabled by TAOEVM. With humble beginnings starting out as top miners in the early days, to being a research-focused validator, and now as subnet builders, we have designed Backprop Finance to address ecosystem stakeholders' pain points by making impactful capital investment and sustainable yield generation in Bittensor accessible to all. Backprop Finance offers the following features and capabilities below, with more to come in near future:

Backprop Finance for DEX

Swap and trade TAO/EVM tokens seamlessly

Backprop Finance features intuitive UI that is designed for both classic users who wants to perform a quick and seamless swaps between TAO/EVM tokens as well as advanced users who needs all the data and visualization to gain an edge in TAO/EVM trading.

The classic UI features:

• The familiar wallet login flow that supports popular EVM wallets such as Metamask, Rabby and more, in addition to substrate-friendly wallets such as Talisman.

• Timeless UX design and flow inspired by Uniswap and Jupiter with granular controls such as slippage.

The advanced UI features builds on top of classic UI with additional functionalities such as:

• Charts for strategy visualization

• Top holder distribution and analysis

• Live and historical transactions table

Swap

Earn protocol fees and emissions through an incentive flywheel while providing liquidity

Provide liquidity for TAO/EVM pairs to earn yield in the form of TAO emission, on top of trading fees. We currently support the following pools with more to come:

• Uniswap V2 pool

• Curve StableSwap pool

• [Upcoming] CLMM pool (e.g. Uniswap V3, Trader Joe Liquidity Book etc.)

The platform will also be agentic-friendly to empower autonomous liquidity deployment by AI agents to build their unique strategies and curves distribution to maximize yields for their communities.

Liquidity

In addition, by locking Backprop Subnet dTAO to obtain vote-escrowed Backprop Subnet dTAO, users can further increase their yield by voting to determine incentives distribution for liquidity pool (LP). Holders of locked Backprop Subnet dTAO can also benefit from bribes that come in the form of trading fees generated by the liquidity pool. Pool creators can also deposit additional tokens from external sources to increase the bribe. The governance system is designed to ensure that emissions align with network priorities while attracting liquidity into the Bittensor ecosystem.

Bribe

Backprop Finance for Bittensor

All of the above but turbo-boosted for Bittensor

Subnet builders on Bittensor can deploy a wrapped ERC-20 version of their Subnet tokens in Backprop Finance to enjoy liquidity incentivisation to facilitate healthy trading and investment flows, and more importantly, unlock new use cases empowered by smart contracts on top of their current solutions to encourage healthy staking behaviours for the investors of their subnets. Backprop Finance is designed to help subnet builders abstract the need of having a dedicated DeFi team, and let them continue doing what they do best: leading cutting-edge AI research and development.

Capital Solutions for Bittensor Subnet Builders

Gain powerful edge in dTAO trading

The dTAO Trading Terminal in Backprop Finance empowers dTAO investors and traders alike with more powerful features such as:

• Real-Time Price Tracking & Charts

• Whale transaction alerts and wallet monitoring capabilities

• Integrated information terminal about the Bittensor subnets curated by Tensorplex Labs

• Portfolio visualization grouped by tokens, subnets, validators

• Many more features and products to come including DCA, Dynamic TAO yield-compounding automation strategies etc.

Dynamic TAO Trading Terminal