Liquidity
What we do
Introducing scalable returns on Bitcoin
Our SynHash product gives Liquidity Providers direct exposure to returns from the Bitcoin infrastructure itself. The Block Green protocol facilitates daily rewards payouts to the LP – it’s a solution built on Bitcoin, for Bitcoin.
Scalable returns
We unlock attractive Bitcoin-denominated yields by offering a direct and secure way to invest in Bitcoin infrastructure.
Secured pools
Our SynHash Pools are secured by on- and off-chain collateral, with an adjustment mechanism for missed hashrate delivery.
Daily payouts
The Synhash product gives the LP direct exposure to hashrate and its corresponding rewards.
Vetted miners
We partner with some of the best miners in the world, and our Know Your Miner process screens for financial health, sustainability credentials, and operational quality.
How it works
Synthetic hashrate exposure offering daily mining rewards.
The Block Green protocol offers Liquidity Providers direct access to Bitcoin infrastructure returns via our SynHash capital pools. For each liquidity opportunity a dedicated Synhash Pool is created – these are multisignature wallets opened with Tier 1 custodians.
The SynHash pools serve as liquidity vehicles for each opportunity, and distribute the hashrate rewards to the Liquidity Providers daily.
Funding flow
The funding flow from liquidity providers works as follows:
Opportunity selection
Miners onboard by submitting the required information for KYM, including financials, operational data, their energy sourcing and strategy.
Access to KYM report
The LP can access a KYM report per Synhash pool including all the due diligence material provided by the miners as well as the credit scoring issued by the Protocol.
Allocate liquidity
Once the due diligence completed the LP enters into a mining rewards streaming agreement with the miner via the Synhash capital pool.
Release funding
As the tranches of the opportunity have been allocated liquidity, the miner is notified to post collateral and redirect hashpower after which the liquidity is released.
Receive rewards
The SynHash Capital pools monitor the provided hashrate and distributes daily rewards to the Liquidity Providers.
Architecture flow
Reward Redemption flow:
Daily reward distribution
Following the release of the funds, the protocol starts to receive daily mining rewards from the miner's mining pool. These will be distributed on a daily basis to liquidity providers.
Reward allocation
The Redemption Service checks what rewards are due to be redeemed, and to which Bitcoin addresses. This is configured by the owner of the future reward token, by calling BG Smart Contracts.
Direct withdrawal
Withdrawal is made directly from the mining pool account of the protocol. If the protocol’s account received insufficient mining rewards to repay LPs, collateral is liquidated in order to cover the difference
Funds returned
Funds are delivered to LPs proportionally to their investment
know your miner
Know Your Miner (KYM) is our screening process for the introduction of new opportunities on the Block Green protocol. We only partner with highly financially robust mining operations. Their adequacy is determined based on three frameworks:
Proprietary credit scoring
Sustainability index
Predicted Bitcoin value
Some Criteria
- Mining site operations
- Equipment
- Existing mining capacity
- PPA
- Energy mix
- Financials
