DeFi mining explained. How does BTCMT staking work?

Smart contracts are the brain

  1. Defining your assets. Smart contracts are shaping the asset. The set of rules inside them specifies what you get and what you can do with them. For instance, stablecoins like USDT use them to peg themselves to other assets. BTCMT uses the same mechanism to tokenize hashrate. By owning 100 BTCMT, you own 1 TH/s of actively running Bitcoin hashrate.
  2. Defining how you purchase. The creation of DeFi assets is defined by smart contracts as well. The process of creating new tokens in a blockchain is called “minting”. BTCMT can be purchased from MDEX or directly on our website. In the second scenario, tokens are minted. The price of the token and the minting process are defined by a purchasing token smart contract.
  3. Defining the staking process. There are dozens of implementations of what staking may look like. Smart contracts handle all the technical side of it. BTCMT is not an exception, so smart contracts manage the staking rewards and the other sides of this process.
Audit results by Hacken.io

How DeFi mining works

The eco-friendly data center of Minto (click to see a real-time stream from it)

So, how does it look technically:

Rewards distribution scheme from the whitepaper of Minto
  1. BTC mining hardware is mining bitcoin in our data center. The hashrate and its rewards are displayed in the hashrate watcher of the F2Pool mining pool (network of equipment to share rewards). It’s a special monitoring tool from their team for you to monitor your assets. On the page, there is a chart with the total hashrate updated every 30 minutes and income/payout history below.
  2. Rewards are transferred to the Huobi Global exchange. We hold the electricity fee from the reward according to the price written in the whitepaper and the BTC to USD exchange rate at the moment.
  3. The profit from tokenized hashrate is sent from Huobi Global to our smart contract using tools provided by Huobi Global. We do it in HBTC which is a BTC in HECO blockchain. Its price is pegged to a regular Bitcoin in a ratio of 1:1. It allows you to perform transactions for less than $0.005 and 3 seconds.
  4. The smart contract distributes the whole data center profit only between those who staked depending on how much BTCMT they have. It happens in the specified time and from this moment no third parties can get access to these assets. It’s set by the rules of this smart contract. So you can
  5. Clicking a “Claim” button in the dApp transacts a reward to the token holder. dApp is an interface to interact with the blockchain product, including smart contracts.

And how does it look for you:

  1. You purchase BTCMT tokens from the MDEX exchange or our website.
  2. You stake them.
  3. You get daily rewards in HBTC.
  4. You claim rewards and trade BTCMT tokens whenever you want.

The beauty of DeFi mining

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