Bitcoin miners back hash rate derivative DeFi project on BSC
The Bitcoin (BTC) mining group has since given way to the Hashrate standard and the recently introduced TAU protocol, a synthetic platform that uses derivatives of Hashrate for its anchoring mechanism.
The TAU project, announced Friday, aims to create algorithmic versions of bitcoin and other proof-of-work assets through a revamped rebranding mechanism. The basic concept is similar to simple folding coins, including the synthetic bitcoin offered by Badger. However, the TAU protocol supports the value of its synthetic assets by Bitcoin, which is derived from the hash rate of mining.
The TAU mechanism is based on the BTCST, the standard hashrate token for mining power, which is assumed to represent 0.1 terahash of mining power. In general, a BTCST can be deployed to receive the number of bitcoins corresponding to the hash of the heap it represents. The TAU protocol accepts BTCST tokens and rewards bitcoins with synthetic bitcoins, while bitcoins linked to hash rate tokens pocket the bitcoin reward.
The bitcoins collected by BTCST are then used in a collateral pool that is activated whenever a synthetic asset trades below its peak value. The mechanism reduces the number of synthetic tokens in each wallet while using its pool of BTC to buy and burn tokens on the open market.
When a token in the TAU algorithm is traded above its expected deployment point, the protocol adjusts a synthetic complexity parameter to generate more tokens from the BTCST stack, a mechanism somewhat similar to that of the Empty Set Dollar and other couponing that extends the new offerings only to special classes of token holders.
Standard Hashrat is backed by a group of major bitcoin miners, including Atlas Mining, Btc.Top, Easy2Mine, Genesis Mining and Hengjia Group. The group claims to control 12% of bitcoin hashrate. The TAU protocol and BTCST tokens only exist on the Binance Smart Chain, making it one of the few original BSC projects.
The Standard Hashrate project is an attempt to connect the bitcoin mining world to DeFi by securing proof-of-work rewards. According to the white paper, the project sees itself as a more transparent and composite version of cloud mining, aiming to create a two-way market for hash rate derivatives. Commenting on the news, Tony Ma, CEO of Atlas Mining, said:
We believe BTCST has connected bitcoin mining to the world of DeFi. With BTCST, we can first win real BTC with DeFi-Intelligent betting. We can now bet that BTCST will benefit from synthetic evidence of asset performance. This is a logical step for BTCST as a gateway for Bitcoin access to DeFi.