The Block Green protocol connects miners with liquidity providers (LPs), enabling automated repayments by leveraging the miner’s existing mining pool.
Miners and LPs can only interact with the Bitcoin network, depositing and receiving funds from vaults belonging to the protocol.
Funding opportunities can only be entered between onboarded and vetted Bitcoin miners and onboarded and identified liquidity providers.
Once a new funding opportunity is opened on the protocol, the flow proceeds as follows:
LPs deposit funds in the opportunity’s SynHash Pool. Here, multiple LPs can fund the same opportunity, thereby filling certain loan tranches defined by the miner
Once a tranche is completed, the miner deposits BTC in the opportunity’s Collateral Vault
The miner allocates the agreed amount of hashpower from their existing mining operations to the protocol. The allocated hashpower is hereby sized sufficiently to meet all required repayments
Once collateral is provided and hashpower allocated, the LPs’ funds are released from the SynHash Pool to the miner’s Liquidity Wallet.
Following the release of the funds, the Rewards Pool starts to receive daily mining rewards from the miner's mining pool. These will be distributed on a daily basis to liquidity providers' Rewards Wallets.
Withdrawal is made directly from the Rewards Wallet of the protocol. If the protocol’s account received insufficient mining rewards to repay LPs, collateral is liquidated in order to cover the difference
Funds are delivered to LPs proportionally to their investment