Quick take:

  • Loka Mining and Hashlabs have launched a new protocol with a decentralised mining pool that provides miners with immediate liquidity.

  • The protocol allows institutional investors to buy Bitcoin at a discount via forward hash rate contracts from BTC miners.

  • The contracts are over-collateralised at 110% and tokenised for immediate liquidity in secondary markets.

Loka Mining, a decentralised BTC mining pool that connects investors with Bitcoin miners has announced a partnership with Hashlabs to launch a new protocol that allows miners to sell their future mining rewards to institutional investors at a discount. The permissionless protocol offers investors access to Bitcoin below market prices using forward hash rate contracts from BTC miners.

The contracts are over-collateralised at 110% and tokenised for immediate liquidity in secondary markets, Loka wrote in a press release shared with NFTgators.

“We’ve seen tremendous interest from larger investors seeking better ways to access Bitcoin, and thanks to Hashlabs’ supply of hashrate and access to miners, we’re providing that— with no counterparty risk,” said Andy Fajar Handika, Founder of Loka. “This protocol provides non-custodial, trust-minimized access to Bitcoin that rewards miners for the work they do providing a necessary service for the network.”

Hashlabs, which boasts over 500 petahashes — or ~0.08% of the total Bitcoin mining capacity will support the offering, levering its operation which spans across Ethiopia, Finland and Kazakhstan. 

Hashlabs co-founder Alen Makhmetov lauded the partnership saying it gives investors the “much-needed access to Bitcoin futures.”

“Just as important, we’re able to provide this service by supporting the most sustainable ways of mining Bitcoin worldwide. By ensuring the financial health of miners, we’re simultaneously improving Bitcoin’s environmental well-being.”

Loka uses ckBTC, the 1:1 multi-chain Bitcoin-backed twin powered by the Internet Computer’s Chain Fusion technology to offer “near-instant, low-cost payouts to miners and liquidity for investors.”

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The post Loka Mining and Hashlabs Team Up to Launch Decentralised Liquidity Pool appeared first on NFTgators .