# Intro 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](http://tensorplex.ai/), Backprop Finance is a decentralised exchange built on top of Bittensor, bridging DeFi with the Bittensor AI 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 decentralised AI ecosystem, 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 (colloquially known as Dynamic TAO, or dTAO). 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. ## Backprop Finance for Bittensor 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. In the next phase of Backprop, we plan to launch a DeFi-oriented subnet which will serve as the backbone of tokens on the EVM layer within the Bittensor ecosystem. More details will be published soon. {% content-ref url="/pages/lFfgUUVaqDnUtOzP1mEr" %} [Dynamic TAO Trading Terminal](/backprop-finance-for-bittensor/dynamic-tao-trading-terminal) {% endcontent-ref %} # Roadmap The following represents our current development roadmap, with more updates to come in near future. Please reach out to our team to request for specific functionalities you would like to see with Backprop Finance. ### 2025 Q1 * dTAO Trading Terminal * Real-time Trading Data (Transactions, price charts, etc.) * Swap * Portfolio page * EVM DEX * ERC20 Support * V2 AMM Contracts \[Audited] * Backprop Subnet Validator and Miner Launch * Backprop dTAO launch * Wrapped dTAO contract \[Audited] * dTAO Farming ### 2025 Q2 * dTAO Trading Terminal * dTAO deployment strategies (Managed Vaults) * dTAO Analytics and Subnet Information * EVM DEX * Advanced AMM contracts * Liquidity Book ### 2025 Q3 * External Pool Programs * Agentic Accessibility * Auto Liquidity Management * Volatility Adaptive Fees # Audit Zellic: # About Tensorplex Labs Learn more about us! ## Check out our other product offerings here Tensorplex Stake: Tensorplex Dojo: Tensorplex Stream: ## Find us at Tensorplex Labs: X: Medium: # ToS and Privacy Policy Please refer to the following documents for the Terms of Service and Privacy Policy. {% embed url="" %} {% embed url="" %} # 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 {% content-ref url="/pages/wpw8frnRj2DZb7uUtUTi" %} [Swap](/backprop-finance-for-dex/swap) {% endcontent-ref %} ### 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. {% content-ref url="/pages/Adr4yof8a07OtD0FmwSD" %} [Liquidity](/backprop-finance-for-dex/liquidity) {% endcontent-ref %} 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. {% content-ref url="/pages/ugKvYMZBfH2BDckvpUBb" %} [Bribe](/backprop-finance-for-dex/bribe) {% endcontent-ref %} ## 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. {% content-ref url="/pages/Aqw3LYM05VPCfOEHTs0Y" %} [Capital Solutions for Bittensor Subnet Builders](/backprop-finance-for-bittensor/capital-solutions-for-bittensor-subnet-builders) {% endcontent-ref %} ### 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. {% content-ref url="/pages/lFfgUUVaqDnUtOzP1mEr" %} [Dynamic TAO Trading Terminal](/backprop-finance-for-bittensor/dynamic-tao-trading-terminal) {% endcontent-ref %} # Swap Previously, in order to trade between TAO and EVM tokens, users have to: 1. Use a Substrate-friendly wallet such as Talisman 2. Obtain ERC-wrapped TAO on EVM chains. This is usually achieved through: 1. If TAO is on Bittensor chain obtained either through mining/validating/running a subnet or being transfered from CEX, users have to use a community-maintained bridge to obtain an ERC-wrapped TAO

Lite UI

Now, with the help of TAOEVM integration, users can seamlessly swap between TAO and EVM tokens without relying on any bridge. Order Routing system will also be in place to optimize the trading experience and fee. # Liquidity Put your capital into work Contribute liquidity to earn yield. Yield comes in the form of trading fees of the underlying Liquidity Pool (LP), as well as in Backprop Subnet Tokens from emissions of the Backprop Subnet, which can be further locked to receive Backprop Finance protocol fees and bribes. More infomation regarding the bribes can be found [here](/backprop-finance-for-dex/bribe) while the mechanism of Backprop Subnet can be found in [here](/backprop-subnet/intro).
## Add Liquidity to an Existing Pool Users can obtain LP tokens for TAO/EVM pools without using bridges. We will also provide zapping functionalities that supports single or multiple tokens, so that users can easily consolidate their TAO/EVM positions and earn yield by contributing liquidity.
## Create New Pool Users can easily create a new pool and the associated gauge to facilitate trading with deep liquidity. Gauge is used to store and channel the emissions not only from Backprop Subnet, but also from additional external protocol tokens the Pool Creator used to incentivise liquidity.
We currently support the following pools with more to come in future: * Classic Pool (Uniswap V2) * Stable Pool (Curve Stableswap) * \[Coming Soon] Concentrated Pool (Uniswap V3, Trader Joe LB) # Bribe Bittensor's Metadex ## Gauge Voting In order to attract deep liquidity to facilitate low-slippage trading, LP token holders will be rewarded in emissions that are stored in the associated gauges. Emissions come in the following various forms: * Additional Trading Fees: Determined by Pool Creator when the pool is initialized to specify a further split of the trading fees to be allocated to the voters. For example, if the Pool Creator sets a 60% split, 60% of the trading fees will go to the LPs and the remaining 40% will be distributed to the voters for this gauge proportionally to their votes. * External Bribes from Pool Creator: Deposited by Pool Creator which can be in any form not limited to external protocol tokens, dTAO etc. * Gauge Emissions from Backprop Subnet: Directed from the smart contract miners on Backprop Subnet, which is determined by the Validators when counting the votes for the miners. More information can be found in the following page {% content-ref url="/pages/KfGtIlLYb1AHhDflA7kz" %} [Rewards in Backprop Subnet and role of Validators](/backprop-subnet/rewards-in-backprop-subnet-and-role-of-validators) {% endcontent-ref %} In order to earn bribes through gauge voting, users have to * Obtain and lock Backprop Subnet Token to receive vote-escrowed Backprop Subnet Token * Vote for your desired gauges * Receive bribes every weekly epoch * Withdraw the bribes instantly from the gauge or recompound the earnings ## Bribe Management As a pool creator, deposit bribe tokens and manage your bribe disbursement schedule to attract more votes to the gauge of your LP. ## Lock Vote-escrowed Backprop Subnet tokens (or ve-dTAO) shall be the sole token that will used for voting. For more information, please visit the following page that explains more about the voting power. {% content-ref url="/pages/qN5g7CM0XxmNjxYdzCtR" %} [Voting mechanism and Tokenomics of Backprop Subnet Token](/backprop-subnet/voting-mechanism-and-tokenomics-of-backprop-subnet-token) {% endcontent-ref %} # Dynamic TAO Trading Terminal Experience [dTAO trading](https://backprop.finance/) with unparalleled convenience and utility through our intuitive web-based dTAO Trading Terminal. Get comprehensive market insights with professional-grade price charts of all dTAO, real-time holder analytics and detailed transaction history, as well as portfolio and subnet analytics to help you gain an edge in dTAO trading and investments.
Visit the following pages to learn more about various features of our dTAO Trading Terminal. {% content-ref url="/pages/p4ORPbC4uxtlvIVCVZ5h" %} [Swap](/backprop-finance-for-bittensor/dynamic-tao-trading-terminal/swap) {% endcontent-ref %} {% content-ref url="/pages/yOuPYVs1ZSKwtgE6RUPT" %} [Trading Analytics](/backprop-finance-for-bittensor/dynamic-tao-trading-terminal/trading-analytics) {% endcontent-ref %} {% content-ref url="/pages/jojgeQ9FAc2CL8Mffw28" %} [Portfolio Dashboard](/backprop-finance-for-bittensor/dynamic-tao-trading-terminal/portfolio-dashboard) {% endcontent-ref %} {% content-ref url="/pages/OSrkKUuJ37J86xUUtpzk" %} [Screener and Subnet Analytics](/backprop-finance-for-bittensor/dynamic-tao-trading-terminal/screener-and-subnet-analytics) {% endcontent-ref %} {% content-ref url="/pages/qxqZT8RVJ2C5psOZbdBk" %} [Leaderboard](/backprop-finance-for-bittensor/dynamic-tao-trading-terminal/leaderboard) {% endcontent-ref %} Upcoming functionalities include: * Customizable DCA strategy through vaults to empower different investment strategies e.g. thematic basket of pretraining/finetuning subnet tokens etc. * Dust Collector to quickly swap Subnet Tokens of small amounts into TAO or other tokens within a few clicks # Swap Say no to use Command Line Interface to perform dTAO trading. Seamlessly exchange your TAO and subnet tokens quickly with on dTAO Trading Terminal that comes with many advanced and sophisticated features. ## Buy dTAO instantly with a few clicks Execute swapping operations effortlessly, control slippage and view price impact warnings. Our dTAO Trading Terminal helps you understand the expected outcome of your transactions. Simply connect your Bittensor-compatible wallets such as Talisman and start trading!
## Customizable dTAO liquidation strategy Execute sophisticated selling strategies automatically with our customizable preset strategies that lets you define your exit parameters, eliminating the need for multiple manual trade executions. Unstaking strategies include: * LBF (Largest Balance First): The validator with the **largest balance** will be used to withdraw first. * SBF (Smallest Balance First): The validator with the **smallest balance** will be used to withdraw first. * EQW (Equal Weight): Each validator will be used to withdraw **equally**. * Manual: Define **custom** amount to unstake for each validator
Now, you can instantly invest in the Bittensor ecosystem, rebalance your subnet exposure while Backprop Finance helps to streamline and abstract the underlying processes for you. # Trading Analytics In addition to the intuitive swapping experience, dTAO Trading Terminal equip you with a comprehensive suite of trading analytics to help you gain an edge in dTAO trading. ## Dynamic Transactions Table Monitor real-time token movements with our dynamic transaction table that automatically updates to display incoming transfers as they occur on the chain. Stay informed about specific wallet activities by filtering transactions based on hotkey, giving you deep insight into the trading patterns of key market players. The live feed ensures you never miss critical movements while the historical view provides context for analyzing long-term behavioral patterns.
## Top Holders Distribution Analytics Track influential wallet movements and potential market impacts by monitoring top dTAO holders and their holding analytics. Our holder distribution analytics helps you assess token concentration, providing early warnings for any significant selling pressure and ensuring you stay ahead of large-scale market movements.
## My Positions Table View your dTAO positions across all subnets at a glance, including your current stake and emission rate of the held dTAO.
## Sophisticated dTAO Price Charting and Visualization Tools Trade smart, not hard by employing your professional-grade technical analysis with integrated charting and visualization suite as you transform hidden opportunities into actionable market insights.
# Portfolio Dashboard Track your dTAO investment portfolio at a glance with our comprehensive dashboard that breaks down your holdings by subnets, P\&L. The intuitive visualization includes both a detailed dTAO breakdown pie chart and a dynamic performance graph showing your portfolio's value changes over time.
## Monitor P\&L of Existing Positions View all your existing holdings in a single table, including Realised and Unrealised P\&L for each subnet dTAO. Our Portfolio Dashboard helps you make more informed decisions for future trades.
## Review Historical Trades and Transfers Keep track of your trading history and transfers, as well as checking out the extrinsics of those transactions. Filters are available to help you group the transactions by subnets, type and more!
## Explore Address Now, you can view all of the above, but on specific addresses that have caught your attention. TAO whale watching has never been easier.
# Screener and Subnet Analytics Explore all of the live subnets, their Github repo, socials, as well as exclusive research report by Tensorplex to help you better understand each subnets better with our Screener and Subnet Analytics.
## Screener View all subnets with top-level statistics in a glance, as well as trending subnets by 24H Trading Volume and Top Gainers.
## Subnet Analytics Analyze the subnet, metagraph and more with our detailed Subnet Analytics to help you find investment alpha to outperform staking to root.
{% hint style="info" %} PSA to current and future Subnet Owners\ \ In order to update the information and links on Subnet Analytics page, please submit a PR to and Tensorplex team will review and update the page in a timely manner. {% endhint %} # Leaderboard See how you stack up against other traders with our Leaderboard. Filter by Trader, Validator, Miner and Subnet Owner.
{% hint style="info" %} P\&L is calculated on First-In First-Out (FIFO) basis, and the P\&L attributed by emissions have zero cost. {% endhint %} # Watchlist Coming Soon... # Capital Solutions for Bittensor Subnet Builders Backprop Finance is built in mind to empower Subnet Owners to continue doing what they do best: developing the best technology, while Backprop Finance does all the heavylift to improve capital flow and ultimately, subnet emissions for you. Now, with Backprop Finance, you can quickly tokenize your subnet token as a wrapped version on ERC-20 to enable use cases that are not possible before, including cross/off-chain integrations. By onboarding on Backprop Finance, you gain access to the Backprop Subnet Token holders who can invest in your subnet token pool and improve emissions for your subnets. Deploy and manage your subnet tokens with Backprop Finance * Quick create wrapped-dTAO of your subnet with an intuitive and friendly UI * Deploy LP pool between Subnet Token and your existing protocol tokens / ERC20 tokens * Manage parameters such as liquidity constant etc, locking period * Manage bribe distribution strategy such as LP trading fee split # Intro Incentives flywheel powered by Bittensor We introduce a twist to the usual Validator-Miner interaction and innovate with a novel approach to capital incentives leveraging Yuma Consensus on Bittensor. Visit the below sections to understand the subnet mechanism, the role of Miners and Validators and the incentives mechanism. # 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. # Rewards in Backprop Subnet and role of Validators In Backprop Subnet, the top-level subnet emissions flows from the Bittensor chain coinbase, just like every other subnets. First, Validators will execute the Voting Contract to count the votes and set weights to the Miners which represent the gauge. In every 12 seconds (when a block is created), the Backprop Subnet receives and distribute 41% of the emissions as incentives to the Gauges in proportion of the votes received. The reward distribution from the gauges to the voters will only happen at the end of the weekly epoch based on the final votes. Backprop Subnet is designed to align network priorities to distribute incentives fairly, and the next section shall explain the most integral mechanics of the subnet, which is the voting mechanism as well as the tokenomics of Backprop Subnet Token. # Voting mechanism and Tokenomics of Backprop Subnet Token Vote-escrowed Backprop Subnet tokens (or ve-dTAO) shall be the sole token that will used for voting. In order to gain voting power, the holder of Backprop Subnet token need to lock the tokens to obtain an ERC-721 representation (also known as veNFT) of the vote-escrowed Backprop Subnet token in exchange. Additional tokens can be added to the veNFT at any time. The lock period can be up to 4 years, following the linear relationship shown below: 100 $dTAO locked for 4 years will become 400 $ve-dTAO 100 $dTAO locked for 1 years will become 100 $ve-dTAO The longer the vesting time, the higher the voting power of the underlying locked balance. The user can choose to auto-max lock where the vesting time does not tick down to maintain the highest possible voting power for the locked balance. The ve-dTAO can be redeemed upon expiration of the locking period to retrieve either the ERC-20 representation of wrapped Backprop Subnet token or the actual Backprop Subnet token on Bittensor chain. Backprop Subnet tokens holder are incentivised to lock their subnet tokens over a long time horizon in order to vote and benefit from the rewards from the Backprop Subnet for those who directly participate and contribute to the incentives decision process of the Subnet. This tokenomics is designed to keep the Backprop Subnet token to be continuously staked in the Subnet pool, which will in turn increase the total TAO emissions available for the pools in Backprop Finance, and also ultimately increase the value of Backprop Subnet token, creating an incentives flywheel that facilitates healthy capital flow for Bittensor ecosystem.
# Gauge Mechanism on Backprop Subnet ## Lifecycle of Gauge as a Miner ### Initialization Created by GaugeFactory upon initialization of new Liquidity Pools. Pool Creators can then register the Gauge as a Miner on Backprop Subnet to be eligible for subnet emissions from Bittensor. ### Maintenance Pool Creators should deposit and replenish external bribes pools regularly to continue retain the votes of the ve-dTAO holders. ### Deregistration In the event that a new gauge is registered on the Backprop Subnet, the non-immune gauge with the least amount of votes will be replaced and no longer receive emissions from Backprop Subnet for downstream distribution. The gauge can be re-registered in the next registration window. ## Supported gauges Our gauges supports the following pools, with more to come in near future: * Volatile V2 * Curve Stableswap * \[COMING SOON] CLMM e.g. Uniswap V3, Trader Joe Liquidity Book model * \[COMING SOON] Generic Pool \[COMING SOON] For more in-depth explanation for the Gauge for Concentrated Pool, please visit the following pages. # \[COMING SOON] CLMM Pool