Collateralising BTC Hashrate on Binance?

Collateralising BTC Hashrate on Binance?

By bengy | Idle Musings | 7 Jan 2021


 

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Binance has a CEX version of a farming and early round token support called Launchpool and Launchpad. They are slightly different, in that Launchpad is a lottery to purchase early rounds of coins, whilst Launchpool is a way to stake BNB/BUSD and various other tokens in a farm-like manner to take a share of the new project tokens.

Needless to say, Launchpad is a little riskier, as you will need to stump up BNB to purchase the tokens if you win the purchase lottery. However, Launchpool is a great risk-free way to gain a little bit of exposure to new tokens that have passed the Binance approval process already and are likely to be listed as soon as the Launchpool farming period finishes.

It's been a mixed bunch of tokens on Launchpool, with some going on to a good price (ALPHA for instance) whilst others have been left behind. However, as you are just staking coins during the period, if you have spare tokens (BNB and BUSD are always included, and there is often a third options as well) on the exchange then it is a pretty risk free way to pick up some extra tokens in new projects. The tokens staked are easily redeemable at the end or at any time. It functions just like the flexible savings products that Binance already offers in their Earn section.

I often sell a portion of the new tokens that are farmed directly back to BNB to increase my holdings there. With the recent fan-based football tokens, I've sold them all... I don't really see much use for them... or at least no personal interest in them!

Bitcoin Standard Hashrate Token (BTCST)

Many of the previous tokens have been DeFi based, on either Binance Smart Chain, Ethereum or Polkadot. Interesting to hang onto, but no current personal use case.

This newest Launchpool token is of more interest to me though.... The Bitcoin Standard Hashrate Token (BTSCT) is a way for miners to hedge their investment by tokenising the Hashrate that their machines are producing for the Bitcoin blockchain. 1 BTSCT is backed by 0.1 TH/s of Bitcoin mining hash at a standardised efficiency of 60 W/TH.

This new token (based on Binance Smart Chain) gives holders a chance to participate in the mining of Bitcoin (with rewards paid out for staking the hashpower in BTC I think?) without needing to pay for the mining equipment AND electricity AND any other overheads. This exposure to mining hashrate comes with the benefits of pooled rewards, similar in to the way that you would have rewards by connecting a physical mining rig to a shared mining pool.

For the miners, it is a way to have a hedge against depreciating equipment prices/capability, changing electricity prices. This token gives them a way to access liquidity through "selling" their hashrate in a standardised manner (this is the benefit over the current cloud mining model).... they don't need to sell machines or BTC to do this to access the capital investment that is locked up in machines and hashrate.

So, a win for both sides of the market... and it is a token that is verifiably backed by mining hash power and not just speculation!

Roughly 4% of the initial supply will be available on Launchpool with the tokens that are available for the staking on Binance being the usual BNB (60%) and BUSD (10%) and fittingly enough, BTC (30%). I'm definitely interested enough in this project to pull BTC and BUSD from the flexible savings products that they are currently sitting in, and also the BNB that is sitting in the Vault staking to focus solely on farming this token!

You can read more about the project here:
Binance Research Report
Project Website
Project Whitepaper

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Originally published on my HIVE/STEEM blog!


bengy
bengy

I am a Musician (Violinist/Violist) specialising in Early Music living in The Netherlands. I have a background in Mathematics and Physics due to an earlier tertiary level study... and so, I'm still quite interested in Science and Technology related stuff!


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Idle Musings

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