What we do
Helping miners turn hashrate into liquidity
Our SynHash product gives Bitcoin miners access to future revenues today. It allows responsible miners to de-risk operations and finance expansion – all based on existing hashrate. Our aim is to build a new, transparent and accessible capital market with Bitcoin at its core.
The Block Green protocol calculates and provides a BTC-denominated value based on the existing hashrate each miner allocates.
Built for Bitcoin
Our entire protocol is developed for, and revolves around, Bitcoin. The funding, capital pools, collateral, and payouts are all denominated in Bitcoin.
Our product removes the volatility risk of traditional fiat loans by denominating the liquidity in bitcoin.
Trusted & transparent
Our protocol is exclusively for accredited and AML-vetted institutional liquidity providers, via direct integration with top tier crypto ecosystems and Prime Brokerages.
How it works
Using hashrate projections to calculate value.
The Block Green protocol calculates a spot value for hashrate based on the available capacity owned by the miner.
It determines that value by taking future hashrate projections and discounting them to account for cost of capital and risk compensation for the liquidity provider.
The funding flow from investors works as follows:
Miners onboard by submitting the required information for KYM, including financials, operational data, their energy sourcing and strategy.
We model the future value of the hashrate based on the KYM, estimating the size, duration and discount rate for the opportunity.
As terms have been approved by the miner, the opportunity and SynHash pool is created on the Block Green protocol.
Once the SynHash Pool is funded the miner needs to post on-chain collateral to the Collateral Escrow Pool.
The transfer of liquidity is triggered when the protocol has confirmation that the hashpower has been redirected to the dedicated SynHash sub-account with the miner's mining pool.
Reward Redemption flow:
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.
The Block Green protocol actively monitors the delivery of hashrate via the mining pool and programmatically matching the hashrate and reward flow with the linked SynHash pool parameters.
In the case of failure in hashrate delivery, the protocol automatically adjusts by liquidating an equivalent share of the Collateral in compensation.
Upon completion of the agreement the SynHash pool is liquidated and the remaining collateral is returned.
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
Predicted Bitcoin value
- Mining site operations
- Existing mining capacity
- Energy mix