Liquidity
What we do
Introducing scalable returns on Bitcoin
Bitcoin holders face a limitation in deploying their capital, hindering the widespread adoption of Bitcoin. Our innovative product offers Liquidity Providers direct exposure to scalable returns from the Bitcoin infrastructure itself. Unlock the true potential of your Bitcoin capital with us.
Scalable returns
Our platform unlocks opportunities in Bitcoin infrastructure, providing access to attractive yields denominated in Bitcoin.
Secured pools
Our opportunities are secured by both on-chain and off-chain collateral. Additionally, we have an adjustment mechanism in place to account for any missed hashrate deliveries.
Daily payouts
The hashrate product offers Liquidity Providers direct exposure to hashrate and its corresponding rewards, resulting in daily payouts.
Vetted miners
Our partnership includes some of the world's best miners, selected through a stringent Know Your Miner process that screens for financial health, sustainability credentials, and operational quality.
How it works
Block Green offers the first end-to-end on-chain solution to deploy Bitcoin capital
The Block Green protocol provides Liquidity Providers with direct access to returns from the Bitcoin infrastructure through the opportunities presented on our platform. For each liquidity opportunity, a corresponding vault is created, utilizing multi-signature wallets facilitated by BitGo.
Block Green monitors daily mining reward distribution, backed by a Bitcoin collateral pool.
Funding flow
The funding flow from liquidity providers works as follows:
Opportunity selection
Miners join the platform by submitting essential KYM information, including financials, operational data, energy sourcing, and strategy.
Access to KYM report
Liquidity Providers gain access to a KYM report for each opportunity. This report contains due diligence material provided by miners, along with the credit scoring issued by the Protocol.
Liquidity allocation
After due diligence, Liquidity Providers enter into a mining rewards streaming agreement with miners through the designated Opportunity.
Funds release
Once liquidity is allocated across opportunity tranches, miners receive notifications to post collateral and redirect the hashrate. Following these steps, liquidity is released.
Reward reception
The protocol actively monitors the supplied hashrate and distributes daily rewards to Liquidity Providers.
Architecture flow
Reward Redemption flow:
Hashrate delivery
The Miners transfer the bitcoin collateral to the multi-sig collateral wallet. The Miners redirect their hashrate to the BG accounts paying out rewards to the capital pool.
Daily reward
Payments are paid out daily via rewards to the protocol Rewards Pool. During the length of the agreement, the mining rewards produced under the streaming agreement are distributed to all LP’s
Reward monitoring
Block Green’s protocol monitor the daily hashrate and adjust for hashrate deviations. During the length of the agreement, the mining rewards produced under the streaming agreement are distributed to all LP’s
Funds returned
The return is the delta between the drawdown and the sum of all rewards received by the Rewards pool
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
