TAO-Only Liquidity Pool: Liquidity providers supply TAO exclusively, earning both miner emissions and protocol fee shares without direct alpha volatility exposure
Long-Only Design: Deliberately prohibits short positions to prevent artificial sell pressure in dTAO markets
Tiered Leverage System: Maximum leverage (up to 10×) determined by Tenex alpha token holdings with on-chain enforcement
Dynamic Fee Structure: Trading and borrowing fees adjust based on utilization rates with tier-based discounts
Automated Buyback Program: A defined share of protocol fees fund programmatic buybacks to support Tenex alpha token demand
Circuit Breaker Protection: Multiple safety mechanisms including rate limiting, utilization caps, and emergency controls

Liquidity Providers deposit TAO into the protocol and earn:
- Bittensor miner emissions
- Share of trading, borrowing, and liquidation fees
Traders can:
- Deposit TAO as collateral
- Borrow additional TAO against their position
- Execute leveraged long positions on alpha tokens
- Benefit from tier-based fee discounts and higher leverage limits
Protocol automatically:
- Maintains TAO liquidity for sustainable borrowing
- Manages liquidations and risk parameters
- Routes fees to buyback pool for Tenex alpha support