Subnet 113: TensorUSD
TensorUSD is Bittensor Subnet 113. Its on-chain description is “A reserve-backed stablecoin designed to support 1:1 redeemability for US Dollar within the Bittensor ecosystem,” and the project site is tensorusd.com. The subnet does not issue the stablecoin by hand; instead it runs the decentralized infrastructure that keeps the stablecoin system working, namely the liquidation auctions that handle risky collateral and the price oracle that feeds it reliable market prices. The codebase for the subnet is TensorUSD/subnet.
What TensorUSD Rewards
A reserve-backed stablecoin relies on collateral that is worth more than the debt it secures. Two jobs keep that arrangement honest, and the subnet rewards miners for doing both well.
The first job is handling collateral that has fallen below its required value. When a vault becomes undercollateralized it is put up for auction, and miners compete to take it on. The subnet rewards the miners who clear that risky debt through the auction process, which keeps the stablecoin adequately backed.
The second job is supplying an accurate price feed. The system needs a trustworthy TAO/USD price to know when collateral is healthy, so miners act as a price oracle by submitting market prices on a regular interval. Submissions that stay close to the agreed reference price are rewarded, while inaccurate or absent submissions are not. Together these two roles give the stablecoin both a way to manage bad collateral and a dependable price reference.
Mechanism Context
The TensorUSD subnet README describes SN113 as two linked mechanisms: liquidation auctions and a price oracle. The connection between them is important for understanding why the subnet is not only a price feed and not only an auction market. The stablecoin needs current prices to decide when collateral has become risky, and it needs an auction process to clear that risk once a vault falls below the required backing.
In the liquidation mechanism, miners watch for liquidation events and compete to take on the undercollateralized position. The README describes validators as listening for finalized auction events, identifying the winning miner hotkey from the bid metadata, and turning the winning auction result into subnet weights. That makes the useful work the successful clearing of bad collateral, not merely detecting that a vault is unhealthy.
In the oracle mechanism, miners submit TAO/USD prices into consensus rounds. The same README describes validators as collecting completed round submissions, comparing them with the round’s price reference, and rewarding accurate submissions while giving little or no credit to far-off or missing submissions. For readers, the key point is that oracle rewards are about price accuracy inside the subnet’s round structure, while liquidation rewards are about winning auctions that resolve unhealthy collateral.
The public TensorUSD subnet documentation places these mechanisms inside the broader TensorUSD system rather than presenting them as separate operator scripts. Read together, the docs and README show Subnet 113 as the Bittensor incentive layer that pays miners for maintaining two pieces of stablecoin infrastructure: market-price reporting and collateral cleanup.
That split also explains why the validator role is mostly observational. Validators do not need to judge a free-form answer or inspect an off-chain model output. They can watch completed auction events, completed oracle rounds, and the miner hotkeys associated with each successful action. The result is a subnet where reward evidence is anchored in recorded stablecoin-system activity, while Yuma Consensus handles how those validator weights become emissions.
Miner and Validator Roles
Miners choose one or both of the subnet’s two activities. In the liquidation activity they watch for vaults that need to be auctioned and place bids to win them. In the price-oracle activity they fetch the current TAO/USD price and submit it to the network on a recurring schedule. A registered hotkey on netuid 113 is what ties a miner’s work back to them.
Validators watch the corresponding on-chain activity rather than producing work themselves. They observe which miner won each liquidation auction and how accurate each price submission was relative to the consensus reference, then translate that into rewards and set weights on the network. That weighting is how reward flows through Yuma Consensus. At the article level the split is straightforward: miners run the auctions and price submissions, while validators measure how well each one performed and weight it accordingly.
On-Chain Identity
Live SN113 subnet data is available on TaoStats, which identifies the subnet as TensorUSD. The live Finney identity for netuid 113 registers the subnet name as TensorUSD and the GitHub repository as TensorUSD/subnet.
Relationship to Yuma Consensus
Subnet 113 uses Yuma Consensus to convert the liquidation-and-oracle weight vectors that validators submit into the emission shares distributed to miners and validators within the subnet each tempo. The Yuma Consensus documentation describes how validator weight submissions are aggregated into consensus weights for each miner registered on the subnet.
In TensorUSD’s context, validators observe on-chain auction events and oracle round submissions, score miners on successful liquidation bids and price-feed accuracy, and translate those results into weight vectors for the subnet. The Emission documentation describes how those consensus weights determine each participant’s share of the subnet’s accumulated emission each tempo.
Development Stage Context
The Introduction to Bittensor describes subnet development as moving from localnet to testnet and then mainnet. For TensorUSD (SN113), that sequence changes how readers should interpret stablecoin liquidation auction and price oracle examples and their scoring outcomes.
In localnet, TensorUSD-compatible miners and validators can be developed and tested in an isolated environment. Localnet auction and oracle results and emission outcomes do not represent production subnet performance.
On testnet, TensorUSD-compatible liquidation and price-feed workflows can be exercised in a shared, non-production network. Testnet auction and oracle scores and validator weights are separate from mainnet subnet state.
On mainnet, TensorUSD (SN113) is the live production subnet where miners run liquidation auctions and submit price oracle data and validators score those contributions to determine real Bittensor emissions. The TensorUSD repository describes the mechanism that applies on the production network.
The Bittensor Networks reference separates mainnet, testnet, and localnet. A liquidation or oracle result from one environment should not be read as representing production subnet performance in another environment.
Reader Boundary
Subnet 113 TensorUSD should not be read as a generic stablecoin minting subnet or as proof that any off-chain USD price quote earns weight. The TensorUSD subnet README describes SN113 as liquidation auctions plus a price oracle that support a reserve-backed stablecoin system rather than manually issuing coins.
SN113 Maintains Infrastructure, Not Stablecoin Issuance
The README links those mechanisms to collateral health and cleanup inside the broader TensorUSD design described in the public subnet documentation. Subnet 113 should be read as the Bittensor incentive layer for auction clearing and price reporting, not as a standalone token launch.
Oracle Rounds and Liquidation Auctions Are Separate Evidence
The same README separates oracle rewards for accurate TAO/USD submissions inside consensus rounds from liquidation rewards for winning auctions that clear undercollateralized vaults. Detecting an unhealthy vault or quoting a price outside the round structure does not substitute for the recorded on-chain auction or oracle outcomes validators use when setting weights.
Validator weights still flow through Yuma Consensus to determine emissions each tempo (Yuma Consensus, Emission).