Siddhant Devkota: TensorUSD Subnet 113, CDP Stablecoin, DeFi Primitives, VARA License | Ep. 90
About SN113 LongShort
In this episode, we are joined by Siddhant Devkota (Sid), COO at TensorUSD (Subnet 113), who details the development of a CDP-backed stablecoin protocol built natively on Bittensor. He discusses the architectural rationale for using Bittensor miners as competitive liquidation agents, the mechanics of the Dutch auction collateral system, and the missing DeFi primitives he sees in the Bittensor ecosystem. Sid also details the protocol's overcollateralization vault model, the ALAS deadlock floor at 105%, the multi-source oracle design resisting miner manipulation, the three-stream revenue model funding the reserve backstop, and TensorUSD's active regulatory licensing efforts across Dubai and Europe ahead of the May 15 mainnet launch. *In this episode, you'll learn* - How TensorUSD uses Bittensor miners as competitive liquidation agents, rewarding the fastest bidder with 99% of liquidation rewards and 1% to all oracle-participating miners - The mechanics of TensorUSD's Dutch auction system: a 120% liquidation threshold, a six-second speed target, and an ALAS deadlock floor at 105% that forces immediate protocol execution if no bids arrive - The overcollateralization vault model — depositing TAO at 150% collateralization to mint TUSDT — and how it lets users access liquidity without selling their TAO position - Why TensorUSD caps miner oracle weight at 15–20% and layers in-house truth verification and multi-source APIs (CoinGecko, CoinGlass) to prevent majority-miner price manipulation attacks - The protocol's three revenue streams — 11% liquidation fees, 0.3% transaction fees, and 10% APY interest on vault borrowers — and how these fund the reserve pool that backstops bad debt - The mint ceiling mechanism: how TensorUSD ties maximum TUSDT supply to the size of the reserve fund, preserving the $1 peg even when collateral value drops below outstanding supply - Sid's case for a stablecoin payment gateway as the most critical missing DeFi primitive in Bittensor, enabling se
Read the article at Ventura Labs (YouTube) ↗
SN113 LongShort at a glance
SN113, LongShort (α token Ѓ), is one of the independent markets on the Bittensor network, each with its own α token and its own price. Its α currently trades at 0.001971 τ (≈ $0.62), against 1,615 τ of pool liquidity. On-chain, the best-delegated validator on it yields about 97.23% APR (simple) and 164.38% APY (compounded), emissions add 0.000000 τ to the pool each block, epochs run every 360 blocks. It was registered at block #7,119,664.
Taosis indexes announcements, articles, posts and releases about Bittensor subnets from their own channels and keeps a record of each. The text above is the source’s; the figures are read from the chain by Taosis.