Into:TensorUSD
TAO-backed dollar for a non-EVM world
As of · Jun 4, 10:37 UTC
Bittensor has its first native stablecoin: lock TAO as collateral, mint a dollar-pegged token called TUSDT, and let subnet miners handle the liquidations and price feeds that keep it honest.
What is TensorUSD
TensorUSD (TUSDT) is a stablecoin designed to hold a 1:1 peg to the US dollar, built natively for the Bittensor network. Users deposit TAO as collateral to mint TUSDT. The subnet's miners keep the system solvent by bidding on undercollateralized vaults and feeding live price data on-chain.
The simple version: It's like MakerDAO's DAI, but for Bittensor. Lock TAO, get a stable dollar token. When collateral ratios slip, miners compete in auctions to liquidate the position.
Centralized equivalent: No direct Bittensor equivalent. On other chains this is MakerDAO on Ethereum, or Liquity, or Raft Finance. Those run on EVM; TensorUSD is built for Bittensor's non-EVM architecture.
How it works:
- Miners participate in two mechanisms: bidding on liquidation auctions for undercollateralized vaults (Mechanism 0), or submitting live TAO/USD price feeds from CoinMarketCap every five minutes (Mechanism 1)
- Validators monitor on-chain auction events and rounds, score miner performance against results and median price, and distribute rewards based on accuracy and participation
Why This Matters
- The problem it solves: Bittensor has no native stable unit of account. Every service, contract, and payment is priced in volatile TAO. A 30% weekly swing makes it hard to price AI compute, write multi-month agreements, or build lending products inside the ecosystem.
- The opportunity: A native stablecoin opens the door to within-ecosystem lending, predictable AI service pricing, and cross-subnet accounting without needing to bridge to Ethereum or route through a centralized exchange.
- The Bittensor advantage: By running liquidation and price oracle logic through subnet miners, TensorUSD avoids dependence on centralized oracle providers or off-chain keeper bots. Bittensor's incentive layer economically aligns miners with keeping the system solvent: accurate oracles earn more, successful liquidations earn more.
- Traction signals: TUSDT is listed on CoinGecko and Bybit. The alpha token (SN113) gained 24.7% in seven days and 43.9% over the past 30 days. A public interview with the team aired on X in late April 2026, generating visible community discussion. The subnet is still early: 3 contributors, 28 total commits, and TaoSwap's most recent reports zero active miners.
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