Poolin, the second-largest bitcoin mining pool, has launched an ERC-20 token backed by its bitcoin hash rate capacity in an effort to bridge proof-of-work (PoW) mining and yield farming.
The token is called pBTC35A. As the name suggests, each unit represents 1 terahash second (TH/s) of hashing power owned by Poolin at a power efficiency of 35 Joule per TH. In an experiment to connect proof-of-work mining with decentralized finance (DeFi), Poolin has also launched a protocol called Mars.
Users who stake pBTC35A or the trading pair of pBTC35A against USDT in one of the two liquidity pools on the Mars Protocol can receive rewards in the form of the Mars governance token as well as Wrapped BTC (wBTC). The calculation is based on the amount of bitcoin that the underlying hash rate can mine at the network’s current difficulty after deducting a set electricity cost and Poolin’s 2.5% fees.
The mining pool said that, at this stage, it is selling up to 50,000 pBTC35A, which is equivalent to 50,000 TH/s of computing power backed by the newest bitcoin ASIC miners hosted at Poolin’s facilities.
“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,” said Kevin Pan, co-founder and CEO of Poolin. “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