On paper, the connection between Bitcoin and popular DeFi solutions is paper-thin. Although some projects exist, they are vastly overshadowed by Ethereum solutions. Poolin, the mining pool, has come up with a way to merge DeFi yield farming with Bitcoin mining.
Yield Farming With pBTC35A
Poolin provides access to many different cryptocurrencies as a mining pool where one can mine with a computer or dedicated hardware. It is a successful pool across many major networks, and the team intends to explore some unusual options. Creating a token backed by Bitcoin mining hashrate to create DeFi yield farming incentives is unique.
The purpose of this setup is to create value for its mining token – backed by 1 TH/s of hash power – and allow traders to exchange it on the open market. The pBTC35A token has a current value of $112.5 and a supply of 200,000 tokens. That means Poolin has tokenized 200,000 TH/s of Bitcoin hashing power and one that does more than just “mine”.
Through the Mars Project, holders of the pBTC35A can either stake the asset to earn wBTC and MARS tokens. Another option is to add Uniswap liquidity, obtain LP tokens, and harvest wBTC and MARS. Sushiswap supports MARS as well.
At the time of writing, the MARS value is $0.16, with a supply of 72.501,449. There is a maximum supply of 2.1 billion MARS, yet it will take a while to reach that number.
With multiple farming pools to choose from, enthusiasts can earn an APY of up to 690.48% at this time. Those who prefer to acquire MARS tokens and stake them can do so, too, as it has an APY of 71.54%. This MARS asset also provides voting rights for the broader Mars Finance ecosystem.
A Bold Move By Poolin
When acquiring Poolin’s pBTC35A token, users officially own 1TH/s of mining power on Poolin. This contract also comes with an energy usage of 35W per Terahash, at an electricity price of $0.0583/kWh. These costs are deducted from the earnings automatically, yielding users a profit of roughly 568 Satoshi per day.
All yields through Mars Finance are settled in Wrapped Bitcoin, which is 100% collateralized by regular BTC on the Bitcoin blockchain. It is mandatory to stake pBTC35A to earn WBTC.
Combining Bitcoin mining with DeFi yield farming may seem like a crazy idea at first. After all, the earnings per TH/s are meager in BTC value. However, MARS tokens’ added incentive may help create a viable alternative for some people who want to support the mining effort but don’t have the hardware to do so.
Poolin is experimenting with something rather intriguing here. Although the TVL remains a bit low – for now – there appears to be a genuine interest in this option. Depending on its success, this may become a new trend in the world of cryptocurrency mining.
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