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HODL - The Alpha Exchange and ETF Subnet

Incentivizing market making and long-term conviction

Intro

Please reference our whitepaper for a comprehensive overview. For frequently asked questions, please see our FAQ document.

Roadmap

  • V1, Live at launch: HODL ETF
  • V2, Q1 2026: HODL Exchange
  • V3, Q3 2026: Futures and Options

Transaction fees generated from V2/V3 will have a major percentage committed to automatic buybacks.

Installation

This subnet is zero code for miners. Please follow the Bittensor document to register a hotkey. Advanced miners can follow the simple setup below and run command ETF/bin/validator to check live scores. Also check out the convenient dashboard developed by Taoli.

Please avoid using the root account, and make sure Python3 is available as command python under a regular user account. Ubuntu 22.04 is the only officially supported OS, although many other OSes can also work with minimum tweaks, including macOS.

Setup

sudo apt update
sudo apt install npm -y
sudo npm install pm2 -g
git clone https://github.com/mobiusfund/etf
cd etf
# optional
python -m venv .venv
. .venv/bin/activate
#
python -m pip install -e .

Validator

# optional
. .venv/bin/activate
# quick start
ETF/bin/validator
#
pm2 start neurons/validator.py \
    --name etf-validator -- \
    --wallet.name {coldkey} \
    --wallet.hotkey {hotkey} \
    --netuid 118

Mining

ETF - Incentivized long-term conviction

Please stake the miner coldkey in one of the supported TrustedStake indexes in order to receive emissions. Currently supported indexes are: TSBCSI, Top 10, Full Stack, Fintech, and Bittensor Universe.

Besides the web-based app, a command-line app can be found under contrib/miner_cli/, developed by Gritty_dev.

It's important to note that the TrustedStake app is non-custodial. The app can stake/unstake on behalf of the miner, but neither TrustedStake nor the subnet can transfer funds. The coldkey remains safe and secure under full control of the miner. Please reference the security guide for further details.

To avoid conflicts of interest, the TrustedStake app completely ignores subnet 118. It will not include 118 in any index, nor stake/unstake any 118 alpha.

Total ETF emissions are equally divided among the supported indexes. Miner score is calculated using the formula below, where $$S$$ is the coldkey stake amount in Tao, and $$D$$ is the stake duration in days:

$$\begin{aligned} & score = S \cdot \left( 1 + 0.25 \cdot ln \left( 1 + \frac {\ D\ } {\ 30\ } \right) \right) \\\ \end{aligned}$$

IMM - Incentivized market making

Please use the miner coldkey to fill orders at the HODL Exchange. A coldkey that has been staked in an ETF index described above will not be counted.

Score is based on total fill volume in a rolling time window, currently 5 days. The window size may change over time. For buy orders, assets bought must remain in the coldkey during the time window in order to be counted.

Total subnet emissions are divided between ETF and IMM based on a set ratio, currently defined as ETF = 0.75, IMM = 0.25. This ratio will change over time.

License

This repository is licensed under the MIT License.

# The MIT License (MIT)
# Copyright © 2024 Opentensor Foundation

# Permission is hereby granted, free of charge, to any person obtaining a copy of this software and associated
# documentation files (the “Software”), to deal in the Software without restriction, including without limitation
# the rights to use, copy, modify, merge, publish, distribute, sublicense, and/or sell copies of the Software,
# and to permit persons to whom the Software is furnished to do so, subject to the following conditions:

# The above copyright notice and this permission notice shall be included in all copies or substantial portions of
# the Software.

# THE SOFTWARE IS PROVIDED “AS IS”, WITHOUT WARRANTY OF ANY KIND, EXPRESS OR IMPLIED, INCLUDING BUT NOT LIMITED TO
# THE WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE AND NONINFRINGEMENT. IN NO EVENT SHALL
# THE AUTHORS OR COPYRIGHT HOLDERS BE LIABLE FOR ANY CLAIM, DAMAGES OR OTHER LIABILITY, WHETHER IN AN ACTION
# OF CONTRACT, TORT OR OTHERWISE, ARISING FROM, OUT OF OR IN CONNECTION WITH THE SOFTWARE OR THE USE OR OTHER
# DEALINGS IN THE SOFTWARE.

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