SN88 Quant Fund: The First Algorithmic Hedge Fund for Subnets

SN88 Quant Fund: The First Algorithmic Hedge Fund for Subnets
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Contributor: Kakashi

88 Quant Fund is the first fully automated hedge fund for dTAO, using intelligence generated by Subnet 88 miners to drive real-time portfolio allocation across subnets.Β 

Capital execution is handled through TrustedStake’s AUM execution layer, enabling automated operation without manual trade decisions.

The launch of 88 Quant Fund marks a shift from subnet research to deployed capital. Miner intelligence has moved beyond isolated research and is now applied directly to capital allocation and risk management across dTAO subnets.

Fund Characteristics

The fund is built as an automated capital allocation system, not a fixed trading strategy.

  • Dynamic Allocations: portfolio weights adjust automatically as miner signals change, reflecting the fast-moving and constantly shifting nature of dTAO markets.
  • Automated Execution: all trades and rebalancing are handled by the system itself, removing delays and human involvement in execution.
  • Risk Control via the Proprietary Meta-Model: risk is reduced by aggregating miner signals that behave differently across market conditions, spreading exposure across independent sources rather than one strategy.

Together, these characteristics focus on drawdown control through systematic capital allocation driven by miner intelligence.

Intelligence & Model Design

At the core of 88 Quant is a proprietary meta-model that operates above individual trading strategies.

Instead of relying on a single model or market view, the system combines intelligence from multiple Subnet 88 miners, each producing signals based on different data sources, methods, and time horizons.

The meta-model evaluates how these signals behave in relation to each other. Signals that tend to perform well or poorly at the same time are treated as similar, while signals that perform well under different conditions are preferred.

This approach (low covariance) means the system favors signals that do not all win or lose at the same time, helping reduce overall risk. As a result, portfolio performance depends on the combined behavior of many independent signals rather than a single dominant strategy.

Before going live, the full system was tested across long historical periods to check stability, drawdown behavior, and performance across different market conditions.

From Subnet Research to Live Capital

88 Quant Fund demonstrates that miner intelligence is no longer theoretical: it is now responsible for allocating and managing real capital across dTAO subnets in a live trading environment.

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