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BTCST: Bring Grayscale into the mining circle and serve as a bridge between DeFi and mining fields

2021-01-28 12:42
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BTCST is not issuing a new project, but providing services

Looking at this feast of technological assets that has lasted for several months, the price of technological assets represented by new energy leader Tesla is refreshing investors' perceptions every day. Similarly, Bitcoin has long been In it, from breaking through the record high to breaking through 40,000 US dollars in a straight line with almost no resistance, Bitcoin has already become the darling of technology and financial media, and has become the headline of major traditional media.


At the same time, along with the reputation of this bull market, there is also the word "grayscale".


In just a few months, this trust institution, which has been established for many years, let the "grey The name Grayscale Investment has spread throughout the industry, and has even become a bellwether for investors in the secondary market. Any change in Grayscale’s product portfolio may be the next hot spot in the market.


Even though it has become so popular, many people still don’t understand the grayscale mode, and even more subjectively understand it as , Grayscale is a company that invests in Bitcoin itself, and the current bull market is bought by Grayscale itself.


Of course not, in the market, Grayscale’s role is more like an intermediary, connecting institutions and Bitcoin. A large number of institutions or funds hold Bitcoin through the channel of Grayscale. Therefore, the view that "Greyscale is controlling the price of Bitcoin" is even more untenable. Grayscale has never controlled the price changes in the market, and is only an intermediary.


Similarly, BTCST, which has been very popular recently, is essentially an intermediary role.


The gray scale of the mining circle

When the gray scale After becoming famous, this model has been trying to replicate, and many teams hope to create the next grayscale. But from another perspective, the same model of grayscale can also be copied to other fields. On the computing power track, BTCST proposed the grayscale mode for the first time.


Bitcoin Standard Hashrate (BTCST), which anchors the real-world computing power. Each BTCST token is anchored to a Bitcoin computing power of 0.1 TH/s and a power consumption ratio of 60 W/TH. Many views think that this is an ordinary new project, which relies on tokens to circulate on the network. But BTCST is logically inconsistent with common projects, and it is not a value circulation on a chain.


Just like the strength of Grayscale is that it allows institutions and high-net-worth customers to have channels to hold Bitcoin, Only the top funds like ARK can disclose their bitcoin asset allocation.


For Bitcoin, the mining circle can be regarded as the primary market for Bitcoin, and the source of selling orders comes from For miners, while investors are in the secondary market, these two parts are separated. There is basically no intersection between investors and mining circles.


BTCST actually connects the Bitcoin primary market with the secondary market. Like Grayscale, BTCST provides It is an intermediary service. Investors who can only trade in the secondary market hold the Bitcoin computing power in the primary market through BTCST, and receive Bitcoin rewards like miners.


Greyscale does not issue Bitcoin, and BTCST is not issuing a new project, but providing services. Tokenize services.


The first grayscale model in the field of computing power also attracted well-known mining companies. On January 26, Bitcoin Standard Hashrate (SHG) officially announced that Hercules, BTC.TOP, Easy2Mine, Genesis Mining, and Hengjia Group, five well-known mining companies, have joined SHG and will join hands with SHG to create industry benchmarks. These mining companies tokenized 25PH/s of Bitcoin computing power and converted it into SHG's native token BTCST.


Advantages of Tokenization

BTCST will The tokenization of computing power actually coincides with the current popular DeFi concept. From the perspective of miners in the primary market and investors in the secondary market, tokenization has advantages. It introduces computing power into the financial field and becomes a bridge between computing power and DeFi.


In the second half of 2020, DeFi used liquidity mining to complete a national DeFi popular science education allows almost all investors in the industry to understand the basic concepts of the DeFi field, including lending, insurance, and transactions.


In fact, BTCST is more like a type of DeFi. Users who used the centralized lending platform Compound in the past must have the impression that after depositing funds into Compound, they will receive cToken, such as depositing LINK and receiving cLINK. cToken represents a certificate of deposit.


BTCST is the certificate of computing power. Holding BTCST is equivalent to holding computing power. At the same time, BTCST, like cToken, is linked to future income. The transaction of BTCST can be regarded as a fixed interest rate swap in the financial field, that is, the yield swap between miners and investors.


From the perspective of miners, BTCST is a kind of risk hedging. Miners can tokenize their computing power and get Income, which is equivalent to fixed-rate income.


From the perspective of investors, BTCST not only provides a new mining model, but also directly participates in the secondary market In the Bitcoin primary market, what investors exchange for is a floating interest rate, which is future income. Under the premise that the future of Bitcoin is bright, the swap between fixed interest rate and floating interest rate is a win-win situation for miners and investors.


Mining with DeFi


BTCST not only integrates the concept of finance into the field of computing power, but even the distribution mode of computing power rewards is the same as the DeFi model. Investors can pledge BTCST to obtain BTC according to the calculation power ratio.


In DeFi liquidity mining, it is common for investors to mortgage LP tokens to obtain project governance token rewards. Players who have participated in DeFi liquidity mining have also gone through various pits, impermanent loss, Pool 2 traps, etc., but BTCST mining does not have these problems. Each BTCST token is anchored at 0.1 TH/s, and the power consumption ratio With a bitcoin computing power of 60 W/TH, what is the actual income of bitcoin mining is the income of BTCST.


At the same time, the distribution of BTCST daily mining income follows the "60% full warehouse income" protection mechanism.


According to the official information, "60%" refers to the daily BTCST official mining The ratio of the number of effectively pledged BTCST  tokens to the total circulation. If it is higher than 60%, then the total income obtained by all valid pledgers will be distributed proportionally from the entire asset pool according to the corresponding ratio.


If it is less than 60%, then 60% of the daily mining income generated by the underlying computing power assets will be transferred to the official Mining, all distributed to valid pledgers on the day.


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According to the rules of BTCST, investors' mining income is far more than the anchor computing power. At present, the total number of BTCST pledges is 85,000, while the circulation is 1 million, and the pledge amount is only 8.5%.


So according to this calculation, investors’ current daily income will be increased by 10.49 times, and the income is not a governance token , but the real Bitcoin, which is the most essential difference between BTCST and other DeFi mining.


The emergence of BTCST is actually equivalent to filling a gap in the market, filling the Bitcoin primary market and the secondary market. It also fills the gap between the Bitcoin mining domain and the DeFi field.


The most important thing is that BTCST introduced the grayscale mode into the mining circle for the first time, not a new project, but Like Grayscale, it provides intermediary services, allowing miners to have channels to hedge risks, and investors to have channels to participate in Bitcoin mining that they could not participate in before.


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