Sturdy Subnet

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Decentralized Yield Farming Fund

• Introduction
  • Subnet Overview
• Installation
  • Before you proceed
  • Install
• License

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Introduction

The Sturdy Subnet is a Bittensor subnetwork that enables the creation of decentralized, autonomous yield optimizers. A yield optimizer is a smart contract that seeks to provide users with the best possible yields by depositing assets to a variety of strategies. On the Sturdy Subnet, every yield optimizer has a fixed set of strategies (or 'pools') that it can deposit to. In turn, each pool has its own interest rate curve, described in more detail below. The goal for each miner is to create an algorithm that computes the allocation of assets among pools that results in the highest yield possible. Validators then evaluate miners based on how much yield their allocation produces.

The outputs of the subnet will be used by third-party applications to move real assets on the Ethereum network. The first application using the Sturdy Subnet is the Sturdy protocol, with more to come.

Codebase

There are three core files.

1. sturdy/protocol.py: Contains the definition of the protocol used by subnet miners and subnet validators. At the moment it only has one kind of synapse - AllocateAssets - which contains the inputs (assets_and_pools) validators need to send to miners to generate return allocations for. See generate_assets_in_pools() in pools.py to see how assets and pools are defined.
2. neurons/miner.py: Script that defines the subnet miner's behavior, i.e., how the subnet miner responds to requests from subnet validators.
3. neurons/validator.py: This script defines the subnet validator's behavior, i.e., how the subnet validator requests information from the subnet miners and determines the scores.

Subnet Overview

• Validators are reponsible for distributing lists of pools (of which contain relevant parameters such as base interest rate, base interest rate slope, minimum borrow amount, etc), as well as a maximum token balance miners can allocate to pools. Below is the function present in the codebase used for generating a dummy assets_and_pools taken from pools.py:

  def generate_assets_and_pools() -> typing.Dict:  # generate pools
  assets_and_pools = {}
  pools = {
      str(x): {
          "pool_id": str(x),
          "base_rate": randrange_float(MIN_BASE_RATE, MAX_BASE_RATE, BASE_RATE_STEP),
          "base_slope": randrange_float(MIN_SLOPE, MAX_SLOPE, SLOPE_STEP),
          "kink_slope": randrange_float(
              MIN_KINK_SLOPE, MAX_KINK_SLOPE, SLOPE_STEP
          ),  # kink rate - kicks in after pool hits
          "optimal_util_rate": OPTIMAL_UTIL_RATE,  # optimal utility rate - after which the kink slope kicks in >:)
          "borrow_amount": randrange_float(
              MIN_BORROW_AMOUNT,
              MAX_BORROW_AMOUNT,
              BORROW_AMOUNT_STEP,
          ),
      }
      for x in range(NUM_POOLS)
  }
  
  assets_and_pools["total_assets"] = TOTAL_ASSETS
  assets_and_pools["pools"] = pools
  
  return assets_and_pools

  Validators can optionally run an API server and sell their bandwidth to outside users to send their own pools to the subnet. For more information on this process - please read docs/validator.md

• The miners, after receiving these pools from validators, must then attempt to allocate the TOTAL_ASSETS into the given pools, with the ultimate goal of trying to maximize their yield. This repository comes with a default asset allocation algorithm in the form of greedy_allocation_algorithm (a greedy allocation algorithm) in misc.py. The greedy allocation essentially works by breaking its assets into many chunks of small sizes, and allocating them into the pools by utilizing their current yields to determine its allocations to each pool (it is done this way because the yields of the pools are dynamic based on their various parameters - most notably it's utilization rate = borrow amount / total available tokens). A diagram is provided below for the more visually attuned:

• After generating allocations, miners then send their outputs to validators to be scored. The scores of miners are determined based on their relative yields their response latency. This means that the fastest, best allocating miner will receive the most emissions, with an 80% weight placed on yield alone, and the other 20% being dependent on miner latency. The resulting is between a range of 0-1. In math speak: $$s_{{k}} = 0.8y_k + 0.2r_k $$ where $s_k$, $y_k$, and $r_k$ are the score, yield, latency of miner $k$ respectively. The reward curve of $r_k$ is determined by a sigmoid curve with response time being the function (see below). Note: The timeout for a miner is 10 seconds, hence why the reward for >= 10s of response time is 0. For more information on how miners are rewarded - please see reward.py.

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Installation

Before you proceed

Before you proceed with the installation, note the following:

• IMPORTANT: Make sure you are aware of the minimum compute requirements for your subnet. See the Minimum compute YAML configuration.
• Note that installation instructions differ based on your situation: For example, installing for local development and testing will require a few additional steps compared to installing for testnet or mainnet. For running a local subtensor - please visit: https://github.com/opentensor/subtensor.

Install

git clone https://github.com/Sturdy-subnet/sturdy-subnet/
cd sturdy-subnet
python -m pip install -e .

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Running

Acknowledgement for Vision Subnet!

We extend our heartfelt appreciation to namoray et al. for their exceptional work on the Vision subnet. Our API, which enables third-party applications to integrate the subnet, draws significant inspiration from their work.

Miner

Validator

License

This repository is licensed under the MIT License.

# The MIT License (MIT)
# Copyright © 2023 Syeam Bin Abdullah

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# the Software.

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