Sturdy Subnet

Decentralized Yield Farming Fund

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

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.

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.
neurons/miner.py: Script that defines the subnet miner's behavior, i.e., how the subnet miner responds to requests from subnet validators.
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 responsible 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(rng_gen=np.random) -> 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, rng_gen
            ),
            "base_slope": randrange_float(MIN_SLOPE, MAX_SLOPE, SLOPE_STEP, rng_gen),
            "kink_slope": randrange_float(
                MIN_KINK_SLOPE, MAX_KINK_SLOPE, SLOPE_STEP, rng_gen
            ),  # kink rate - kicks in after pool hits optimal util rate
            "optimal_util_rate": randrange_float(
                MIN_OPTIMAL_RATE, MAX_OPTIMAL_RATE, OPTIMAL_UTIL_STEP, rng_gen
            ),  # optimal util rate - after which the kink slope kicks in
            "borrow_amount": format_num_prec(
                POOL_RESERVE_SIZE
                * randrange_float(MIN_UTIL_RATE, MAX_UTIL_RATE, UTIL_RATE_STEP, rng_gen)
            ),  # initial borrowed amount from pool
            "reserve_size": POOL_RESERVE_SIZE,
        }
        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. In order to do this, validators run a simulation which simulates borrow behaviour over a predetermined amount of timesteps. The scores of miners are determined based on their relative aggregate yields over the simulated timesteps and 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 score 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 and how the simulator works- please see reward.py and simulator.py respectively.

We provide a demo which plots simulations in plot_simulator.py. We provide a sample output of the script below:

Installation

Before you proceed

Before you proceed with the installation, note the following:

Python version 3.10.x is required to run code in this repo. We highly recommend that you use some thing like conda to create virtual environments with its own python 3.10.x interpreter. For more information on how to do this, please refer to conda's documentation regarding installation and environment creation.
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.
We also urge miners to set up a firewall as shown here to mitigate naive DDOS attacks.

Install

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

Setup WandB (HIGHLY RECOMMENDED - VALIDATORS PLEASE READ)

Before running your miner and validator, you may also choose to set up Weights & Biases (WANDB). It is a popular tool for tracking and visualizing machine learning experiments, and we use it for logging and tracking key metrics across miners and validators, all of which is available publicly here. We highly recommend validators use wandb, as it allows subnet developers and miners to diagnose issues more quickly and effectively, say, in the event a validator were to be set abnormal weights. Wandb logs are collected by default, and done so in an anonymous fashion, but we recommend setting up an account to make it easier to differentiate between validators when searching for runs on our dashboard. If you would not like to run WandB, you can do so by adding the flag --wandb.off when running your miner/validator.

Before getting started, as mentioned previously, you'll first need to register for a WANDB account, and then set your API key on your system. Here's a step-by-step guide on how to do this on Ubuntu:

Step 1: Installation of WANDB

Before logging in, make sure you have the WANDB Python package installed. If you haven't installed it yet, you can do so using pip:

# Should already be installed with the sturdy repo
pip install wandb

Step 2: Obtain Your API Key

Log in to your Weights & Biases account through your web browser.
Go to your account settings, usually accessible from the top right corner under your profile.
Find the section labeled "API keys".
Copy your API key. It's a long string of characters unique to your account.

Step 3: Setting Up the API Key in Ubuntu

To configure your WANDB API key on your Ubuntu machine, follow these steps:

Log into WANDB: Run the following command in the terminal:
```
wandb login
```
Enter Your API Key: When prompted, paste the API key you copied from your WANDB account settings.
- After pasting your API key, press Enter.
- WANDB should display a message confirming that you are logged in.
Verifying the Login: To verify that the API key was set correctly, you can start a small test script in Python that uses WANDB. If everything is set up correctly, the script should run without any authentication errors.
Setting API Key Environment Variable (Optional): If you prefer not to log in every time, you can set your API key as an environment variable in your ~/.bashrc or ~/.bash_profile file:
```
echo 'export WANDB_API_KEY=your_api_key' >> ~/.bashrc
source ~/.bashrc
```
Replace your_api_key with the actual API key. This method automatically authenticates you with wandb every time you open a new terminal session.

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

# 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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