On the basis of tokenizing standard computing power, HashFi provides users with multiple revenue models such as computing power mining and liquidity mining, and will gradually launch a variety of derivative tools to meet the diverse needs of users.
Written by: Dongchang
With the explosive growth of the encrypted digital currency market, mining has attracted the attention of more and more entrants.
According to the data analysis of Coinmarketcap and Bitinfochart, digital currency mining can indeed bring better and safer cash flow and returns than buying coins directly, but now this field is becoming more and more specialized, technology and capital The threshold is also getting higher and higher, causing many ordinary investors to stay away.
For those who are in the cryptocurrency and blockchain industries, the most commonly heard word is computing power. At present, there are two major computing power business models in the crypto market, one is to purchase mining machines directly. , Using mining machine computing power to mine; the other is to buy cloud computing power, users only need to buy “computing power package” and wait for the income, without considering additional things such as mining machines and electricity bills. However, the former has huge input costs and is susceptible to many market uncertainties, while the latter usually has entry and exit periods during which it is almost impossible to obtain any liquidity. Therefore, it is not the most effective for computing power providers and computing power buyers The best solution.
Now, a new “play method” has surfaced, and it is hashrate coins. Hashcoin is a token mapped from actual computing power. Holding a certain project Hashcoin is equivalent to holding “corresponding mining power”, and the output income is linked to the daily mining income . Different from traditional cloud computing power services, this model integrates DeFi, which is equivalent to mortgage assets in the real world, and then generate tokens on the chain, thus providing more crypto assets for the originally small-scale circulation of computing power assets. For the liquidity in the currency industry, if you don’t want to “make money” through computing power, just sell the computing power you hold.
There is no doubt that the hashrate solution that meets the needs of all parties will open up new opportunities for the cryptocurrency mining market-and this is exactly what HashFi wants to achieve.
What is HashFi
HashFi is a computing power financial protocol based on the Binance Smart Chain ecosystem. On the basis of tokenizing standard computing power, HashFi provides users with multiple income models such as computing power mining and liquidity mining, and will gradually launch a variety of derivatives tools to promote the financialization of traditional computing power to meet The diverse needs of users.
Through deep integration with decentralized finance, HashFi aims to rebuild the infrastructure of the mining industry, enhance the financial attributes of computing power assets, adapt to the diverse needs of participants, and then promote the accelerated development of the entire ecosystem. HashFi V1 will start with the standardization and tokenization of Ethereum’s computing power, bringing sufficient and effective liquidity to computing power holders, while building a flexible and comprehensive incentive and governance system with the support of ecological value.
HashFi operating mechanism
HashFi adopts a dual-token model. One token is Ethereum Standard Hashrate Token (“ETHST”), and the other is HashFi Token (“HFI”). The former is a homogenized token secured by standard Ethereum computing power. 1 ETHST anchors 1 MH/s Ethereum computing power, and the energy consumption ratio is 3W/MH; HFI is the native token of the HashFi platform, which aims to provide incentives for community members who actively participate in and empower the ecology. In addition, HFI is also practical Type of platform token. Below, let’s take a look at the operating mechanism of HashFi’s hashrate currency:
ETHST
ETHST is a tokenized standard computing power. There is no limit on the number of tokens issued, but each ETHST token is linked 1:1 to the real Ethereum computing power owned by HashFi. Holding ETHST tokens is legally compatible Functionally equivalent to having the corresponding computing power. As a standard token, ETHST can be traded on decentralized exchanges or centralized exchanges, thereby forming a real-time Ethereum computing power market with free entry and exit and low transaction costs, and also bringing effective liquidity to the Ethereum mining industry .
The basic income of ETHST is the net income of participating in ETH mining through the use of anchored computing power, which is a kind of “ETH net value”, that is: mining capacity minus electricity fees, mining pool fees and mine custody fees. In addition, 10% of the net mining revenue will be used to develop the HFI ecosystem. The following figure shows the mining revenue stream of ETHST:
- Daily Net Mining Reward = Daily Mining Reward-Daily Cost (Daily Cost includes mining pool handling fee, electricity fee and mine custody fee).
- The mining pool fee rate is 1%.
- Mine custody fees include site costs, labor, etc., which are included in the 3% energy loss.
- The electricity price is 0.075 USD/kWh.
What are the profit models for ETHST holders?
- ETHST can be pledged in Ethereum mining
- Can provide rewards for ETHST liquidity providers (LP)
- Holding ETHST is equivalent to holding ETH “call options” and you can get mining rewards every day
- Get more arbitrage opportunities
Participants can deposit their ETHST in the HashFi mining pool, so that they are entitled to a certain amount of ETH income as a mining reward. Not only that, users can also withdraw their pledges and claim their own mining rewards at any time. However, keeping ETHST in the wallet or storing it in the ETHST-USDT liquidity pool will not give token holders any ETH mining reward rights:
- According to the proportion of ETHST invested by participants in the HashFi mining pool, the net mining rewards are distributed through smart contracts in a decentralized manner;
- If the pledged ETHST in the HashFi mining pool is less than 60% of the total issued ETHST, the net mining reward will be distributed according to the following steps——
- 60% of the total net mining rewards will be allocated to ETHST pledgers;
- 10% of the total net mining rewards will be allocated to HashFi for ecosystem development;
- 30% of the total net mining rewards will be reserved for project funds.
- If the pledged ETHST in the HashFi mining pool is greater than 60% of the total issued ETHST, the net mining reward will be distributed according to the following steps-
- 90% of the total net mining rewards will be allocated to ETHST pledgers;
- 10% of the total net mining rewards will be allocated to HashFi for ecosystem development;
How is ETHST issued?
Providing users with reliable, sufficient and reasonably priced mining capabilities is one of HashFi’s core business goals. Any applicant can exchange their mining capabilities for ETHST tokens as long as the following conditions are met:
- The ownership and use rights of mining equipment belong to the applicant, and there is no dispute or legal issue;
- The mining equipment is managed by a HashFi certified mining farm/site;
- The mining power for each submission of ETHST token exchange should not be less than 300GH/s.
It should be noted that the current HashFi hashrate currency is one-way, which means that once the exchange is completed, the ownership of mining equipment, income rights and mining rights will be transferred to HashFi. As a corresponding obligation, HashFi will cooperate with third-party regulatory agencies to ensure the normal operation of mining equipment corresponding to ETHST tokens, the distribution of mining revenues on time, and the regular disclosure of operational data.
How is ETHST distributed?
ETHST does not have an upper limit on issuance:
- Each ETHST is anchored at 1MH/s of Ethereum computing power, and the power consumption ratio is 0.003kW/MH.
- There is no upper limit on the total issuance of ETHST. The initial issuance of ETHST is 500,000, which means that HashFi has a computing power of 500,000 MH/s.
HFI
HFI is the native token of the HashFi platform, with a fixed total circulation of 10 million. This token is the cornerstone of the incentive structure of the HashFi platform.
Functions & Benefits
Governance. The continuous expansion of the scale and value of ETHST will stimulate the community’s demand for governance rights. When the ETHST computing power reaches a certain scale and HFI is fully circulated, HashFi will gradually open the HFI governance function. HFI holders have the right to participate in voting and decision-making on matters such as the profit distribution ratio, the selection of cooperative mining pools, and the setting of risk parameters.
excitation. Governance results can affect the distribution method of computing power and also provide value support for HFI. Under this premise, HashFi has built an incentive system around HFI. The following positive behaviors that promote ecological development will be rewarded by HFI:
- Convert the new computing power into ETHST tokens;
- Provide liquidity for ETHST transactions;
- Provide liquidity for HFI transactions;
- Lock HFI in the DAO pool and participate in governance.
How is HFI distributed?
- 55%: Ecological and community incentive measures;
- 20%: reward the initial contributor of mining power;
- 15%: Team motivation. After six months from the Token Genesis Event, 5% of the tokens will be released every six months.
- 10%: Project reserve fund used for operation and marketing.
HashFi’s future plan
HashFi has established close cooperation with the world’s three major mining machine manufacturers to continuously obtain computing power supply through long-term procurement. In addition, HashFi has also established long-term cooperative relationships with global high-quality mines to obtain reliable power resources to ensure the continuous and stable output of computing power; not only that, HashFi has also established in-depth cooperative relationships with the world’s top five mining pools to ensure Continuing effectiveness of revenue.
HashFi will be launched in May 2021 and the first phase of hashrate coins will be released; V2 platform development will be launched in August, and more partners will be sought to obtain more hashrate; V2 will be launched in December, and it will also provide Powerful lending products and derivative products.
Risk warning
According to historical data, there are certain uncertainties and potential risks in cryptocurrency mining. These risk factors include but are not limited to:
- Computing power risk
- Market risk
- Policy and legal risks
- Digital currency risk
- Force majeure and accident risk
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