Decentralized derivatives exchange SynFutures launched a new product called Bitcoin (BTC) Hash Rate Futures that uses the biggest cryptocurrency’s dynamic mining difficulty as a basis to open long or short positions.
- SynFutures’ new offering would allow users to trade on Bitcoin mining difficulty with wrapped BTC (WBTC).
- Hash rate and mining difficulty are two core workings of Bitcoin that become more popular with the exit of miners following the China crackdown.
- The Bitcoin network needs mining difficulty to readjust in every 2,016 blocks to counter the Bitcoin hash rate, the amount of computing power needed for mining.
- SynFutures developed the Hash Rate Futures by designing an oracle for validating the Bitcoin block headers directly and gathering the mining difficulty.
- Miners can short the Hash Rate Futures to hedge against the risk of mining difficulty increases or the long electricity futures to estimate the cost of power.
Last month, SynFutures raised a $14 million Series A funding round led by Polychain and the involvement of prominent crypto investors, including Framework and Wintermute.
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