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Opportunity funding

The process of funding opportunities in Block Green

Opportunity Commitment

The process begins with a liquidity provider committing to fund an opportunity. This decision is based on the terms agreed upon between the LP and the miner, including the allocated hash rate, transaction duration, and hash price.

Agreement Signing

Once the LP commits, the LP and the miner sign an agreement for the opportunity. This contractual agreement outlines the terms and conditions of the funding opportunity, including specific details about the collateral, rewards, and the duration of the funding.

LP Funds Opportunity

Following the agreement, the LP sends its committed liquidity to the SynHash pool. This funding vault serves as a secure depository where the LPs' funds are held until they are delivered to the miner.

Miner Posts Collateral and Redirects Rewards

The miner then posts the agreed collateral in an on-chain collateral vault. This acts as a security deposit and ensures the miner's commitment to the agreement. The miner also redirects mining rewards from the agreed hashrate to the reward vault, creating a stream of returns for the LPs.

Delivery of Initial Liquidity to Miner

Once the collateral is posted and the mining rewards are redirected, the initial liquidity is delivered from the funding vault to the miner. This marks the successful conclusion of the funding process, and the miner can now access this liquidity for its needs.