Poolin, which is the second-largest BTC mining pool, is leveraging its hash rate power to debut an ERC-20 token that will enable users to engage in yield farming and its primary activity, proof-of-work mining. The token, which is dubbed pBTC35A, is backed by Poolin’s BTC has rate capacity. One unit represents 1 terahash second (TH/s) owned by Poolin, given a power efficiency of 35 Joule per terahash.
As the DeFi ecosystem grows, crypto stakeholders from various niches are further developing in the nascent ecosystem. Poolin’s debut into this niche will see the Bitcoin mining pool join other DeFi contributors working on scalable solutions to increase participation. It has since launched a protocol known as ‘Mars,’ which will facilitate the connection between its proof-of-work ecosystem and DeFi.
The Mars protocol has two liquidity pools where interested prospects can stake their pBTC35A tokens and, in turn, earn rewards based on the protocol’s governance token or wBTC. Rewards will be calculated according to the amount of BTC that can be mined with the stipulated hash rate, after the deduction of Poolin’s 2.5% fees and a pre-determined electricity cost.
Poolin Co-founder and CEO, Kevin Pan, expounded on this reward calculation model,
“By setting just two parameters, power efficiency (35 J/TH) and electricity cost ($0.0583/kWh), pBTC35A helps standardize bitcoin hash rate and provides a benchmark for the pricing of bitcoin ASIC miners in the future … Since the power efficiency ratio and electricity cost are given, it’s also more transparent to calculate the corresponding mining results on chain [compared to traditional cloud mining].”
The BTC mining pool said that they are currently selling 50,000 TH/s worth of computing power, translating to 50,000 pBTC35A tokens. So far, over 8,500 tokens have already been acquired; interested prospects can purchase these ERC-20 tokens from Poolin directly or trade the USDT pair on Uniswap, which is now trading at $101 as of press time.