[2412 BIG Wave 4] POWD3R Protocol: We make Bitcoin Mining RWA

Grants & Incentives
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POWD3R Protocol

Submission Date: 2024-12-16T00:00:00Z

Sector: RWA Tokenization, Bitcoin Mining, DeFi

Award Amount: $5,000 (rBTC)

Project Stage: Prototype development

TL;DR:

POWD3R Protocol makes Bitcoin mining RWA.

We own, operate and tokenize Bitcoin mining operations,

Bringing liquidity, utility and composability to an asset that has never been properly connected to the web3 economy.

Deck | Video | Website | Socials:

Deck: https://powd3r.io/wp-content/uploads/2024/12/POWD3R-Pitch-Deck-v3.0-5min.pdf

dApp Wireframe: POWD3R dApp

Website: powd3r .io

X (Twitter): /powd3r_io

LinkedIn: /company/powd3r-protocol

Description:

Bitcoin Mining has typically high yields (24-36% APR) much higher than typical proof-of-stake staking APRs (3-15%), but it has very bad liquidity and low capital efficiency.

Tokenizing it and connecting it to the web3 economy, gives it full liquidity and composability, enabling new structured products such as leveraged Bitcoin mining yields.

Through lending-borrowing protocols, users can collateralize their POWD3R tokens and borrow stablecoin to buy and collateralize more POWD3R tokens. This is widely known as restaking, or loop-lending, and it is feverously done to leverage rather low, inflationary, proof-of-staking yields (3-15%).

POWD3R protocol allows through lending/borrowing protocols, leveraging high BTC mining yields (base 24-36%), reaching 40-60% non-inflationary BTC yields! (let that sink in for a minute. I know right?)

Rootstock Synergy:

At first, POWD3R is a permanent cashflow generating asset, constantly “printing” BTC. For ecosystems this means a permanent, automatic, constant inflow of mined BTC (rBTC) into the ecosystem.

As POWD3R gives liquidity to an excellent asset with originally low liquidity, POWD3R thrives on composability on the ecosystems it operates. POWD3R’s Bitcoin mining tokens will immediately seek utility, capital efficiency, and secondary income streams, providing liquidity to DEXes, collateralizing and taking liquidity from lending/borrowing protocols, and creating new structured products.

Rootstock’s TVL is mostly allocated on collateralized stablecoin (Money and RIF on Chain), lending/borrowing protocols (Tropykus, Sovryn, Segment), and DEXes, (Uniswap, Sushi, WoodSwap), all of those are poised to benefit from POWD3R’s innate relentless pursuit for utility and composability, translating to a strong upward drive on TVL.

Furthermore, if the philosophy of Money on Chain CEO is to be followed, there might be a case for implementing a “POWD3R on Chain”, where users deposit POWD3R tokens and mint stablecoin, while still retaining their BTC mining yields, for the ultimate capital efficiency.

“When we designed the Money On Chain protocol, we did it thinking that the financial model could also be used with other collateral assets.” ~Money on Chain CEO Max Carjuza

And lastly, POWD3R is poised to get regulated in El Salvador and launching on BTC Liquid Network, becoming available to each and any Salvadorean citizen. POWD3R will always cross-chain integrate on the ecosystems it operates, thus bringing a cross-pollination, and strong capital inflows to Rootstock ecosystem.

Being a Bitcoin Merged Mining blockchain, Rootstock has an intimate, inseparable, symbiotic relationship with Bitcoin mining, being the perfect BTC L2 blockchain to launch an RWA Bitcoin mining application.

Team:

Head of Product and Engineering: Guilherme Tondello (Chrono Trigger)

  • 16 years engineering expertise
  • 10 years managing his own engineering company
  • Product Manager, R&D Manager, Project Manager at ARTHUR INC
  • MBA in Innovation Management
  • Bitcoin Mining since 2018
  • Web3 and DeFi since 2019

LinkedIn: /tondello
X (Twitter): /chronotrigger3d

Head of Growth: Andre Veral (Joe)

  • 8 years expertise in crypto analysis
  • 6 years in content and business strategy
  • Social media specialist
  • Reached over 60 million accounts organically
  • Generated more than 5 million dollars in business
  • 50k+ followers on TikTok

LinkedIn: /andrealbuquerquecv
TikTok: /@andreveral
X (Twitter): /we3builder

Roadmap:

Q4-2024

  • Funding (grants and venture capital)
  • dApp development

Q1-2025

  • Small scale mining operation
  • BTC L2 launch
  • Pre-Seed/Seed Round
  • Large scale mining operation
  • Public Sale

Q2-2025

  • El Salvador regulation
  • BTC Liquid Network launch
  • El Salvador / BTC Liquid Network focused raise
  • Cross-chain integrations

Grant funds will be entirely used for development costs (arguably the best investment for a blockchain ecosystem).

Milestones:

Q4-2024

Prototype: dApp and mining

Q2-2025

  • $5-10M in Mining
  • 3+ Blockchains
  • Composability based growth

End-2025

  • $30M+ in Mining
  • 2+ Mining Sites
  • 5+ Blockchains

If you like our project, please comment below, and vote on our governance proposal in the DAO.

“Bitcoin is digital gold – growing harder, smarter, faster, & stronger due to the relentless progression of technology” ~Michael Saylor

Join us in revolutionizing Bitcoin mining through Web3.

3 Likes
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@rspa_StableLab can you advise on the proper time to post an on-chain proposal on the governance dApp?

1 Like
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Hey ChronoTrigger,

You can put it up any time. Ideally before Christmas.

Thanks for your proposal!

1 Like
4

Interesting proposal—tokenising Bitcoin mining could boost liquidity and composability, aligning well with Rootstock’s ecosystem.

1 Like
5

Exactly. Bitcoin mining is an asset with very high yields – 24-36% APR of cold hard BTC, non-inflationary – but it has absolute terrible liquidity: Very high capital is needed, you’re stuck on your investment for years, can’t easily increase or decrease your position or reinvest, you sign long legal contracts, everything is KYC’d.

Imagine giving full liquidity and utility to that. Imagine being able to leverage your 24-36% APR through lending/borrowing, or stake it and mint a stablecoin, or provide liquidity paired with BTC on a DEX for secondary income.
Imagine proof-of-stake liquid-staking fans realizing what all that means.

This has a serious potential to go viral and ballistic, and push capital inflow, TVL, and the creation of new products.
We’re excited with where the future will lead this.

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Amazing project. Really like the use case. Also, seems reassuring that you are seeking to follow El Salvador regulation. Will the grant allow the team to launch a prototype in testnet/mainnet or only to start developing it? What would be POWD3R commitment with Rootstock in the long term?

2 Likes
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Will the grant allow the team to launch a prototype in testnet/mainnet or only to start developing it?

With $5k we’ll build a real prototype (mainnet), materializing the main parts (mining stats, earn, auto-compound, liquid staking) of our wireframe (linked in our proposal).
In any way, we’ll be scraping the bottom of the barrel. Running on fumes. We’d love to have $50k to comfortably make it happen, but the Wave guideline is maximum $5k, so we followed its lead.
On the flip side, we’re really confident with our project, our greatest weakness is not having a prototype, and having one will unlock new doors.

We did like Sailing Protocol’s recent idea, so once we have the dApp running, we can propose a small value (~$50k?) in mining to be fully owned by the Collective DAO, everything auditable, its Bitcoin mining would go straight to the treasury wallet, and its liquid tokens could be used the way that best helps Rootstock, i.e. providing liquidity on a DEX, or providing collateral on Tropykus.

What would be POWD3R commitment with Rootstock in the long term?

We always follow the Web3 ethos of having collaborative and open approach and we are thankful for whoever helped us in the beginning. We’re all in for staying with Rootstock long term, integrating Rootstock with Bitcoin Liquid Network and El Salvador rails, and other blockchains we eventually integrate with, and bring cross-pollination and capital inflow to Rootstock. We’re all in for collaborating with Money on Chain, Sovryn, Tropykus and building cool structured products.

But honestly, you shouldn’t trust any promise anyone gives about long term commitments. It’ll only perpetuate as long as it’s mutually beneficial.
So that’s what we need to focus on, making sure we create relationships and mutually beneficial initiatives, so it can be a win-win scenario, and partnerships are long lasting.

2 Likes
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@GrantsTeam, @rspa_StableLab, some grants proposal are due in a couple days, with most of them with very low quorums still.
Most proposals will be due right at or right after Christmas.

Can we rally up some of the larger RIF holders so they can cast their votes?

It might look bad for the ecosystem if most of the Wave proposals are due without quorum. Might send a message of an abandoned ecosystem.

1 Like
9

Some general guidelines on on-chain votes:
Polls on weekends and holidays tend to fail more often. This happens across ecosystems.
We did a study on Aave and the same can be observed there.

Which is why it is not recommended to put polls on-chain during weekends or even worse major holidays.

Second: before an on-chain proposal it pays to get in touch with RIF holders you know and track their behavior so you can raise your chances of success.

This is up to the proposal author.

We hope your proposal passes! Good luck and we are also letting everyone know there are votes to cover. But the reality in all DAOs is that holidays, especially Christmas and other major festivities, are tough for proposals.

1 Like
10

Got it. thanks for the thoughtful clarification.

1 Like