Staking on Ethereum
Overview
Section titled “Overview”Staking on Ethereum through VoidAI allows users to stake wrapped Bittensor assets (primarily WTAO) inside Ethereum-based liquid staking vaults.
You receive a staked receipt token (e.g., oTAO) that accrues value over time while remaining liquid and composable in DeFi.
This is different from native Bittensor staking and operates entirely on Ethereum.
Native vs Ethereum Staking
Section titled “Native vs Ethereum Staking”| Type | Chain | Asset Type | Receipt Token | Liquidity |
|---|---|---|---|---|
| Native Staking | Bittensor | TAO / ALPHA | No | Locked |
| Ethereum Staking | Ethereum | WTAO | oTAO | Liquid |
How It Works
Section titled “How It Works”- Hold WTAO on Ethereum
- Stake via VoidAI
- Receive oTAO
- Hold or use oTAO in DeFi
- Unstake anytime
- Receive WTAO back (+ rewards)
Exchange Rate Mechanics
Section titled “Exchange Rate Mechanics”Definition
Section titled “Definition”1 WTAO → X oTAO
Example:
If exchange rate = 1.05
- Stake: 1 WTAO → 1.05 oTAO
- Unstake: 1 oTAO → 0.9524 WTAO (reciprocal)
Why Rates Increase
Section titled “Why Rates Increase”Vault rewards accumulate over time, increasing backing per token.
| Day | Exchange Rate |
|---|---|
| 1 | 1.00 |
| 30 | 1.05 |
| 60 | 1.10 |
Exchange rate cannot decrease under normal vault operation.
Use Cases
Section titled “Use Cases”Passive Yield
Section titled “Passive Yield”- Stake WTAO
- Hold oTAO
- Unstake later
DeFi Strategy
Section titled “DeFi Strategy”- Stake WTAO → oTAO
- Use oTAO as collateral
- Borrow against position
- Maintain yield exposure
Security
Section titled “Security”- Smart contracts audited
- Exchange rate increases only
- Always test with small amounts
How is APY calculated?
Based on exchange rate growth over time.
Can I lose funds?
Smart contract risk exists; rate should not decrease.
Can I use oTAO elsewhere?
Yes — standard ERC-20 token.