Modeling Commodity Marketplace for Proof of Work Networks

Recent market instability, volatility, and Bitcion (BTC) halving event combined to create significant challenges for this sector, resulting in many hashing power producers being forced into bankruptcy. The sector has grown very rapidly and has been plagued with boom-bust cycles that have been difficult for producers to weather due to the lack of hedging tools/financial instruments at their disposal.
Pow.re Corporation offers clearinghouse-type services providing hashing power producers the ability to sell their risk to speculators. We are building an unprecedented clearing and settlement system for new financial instruments based off of the underlying commodity to proof of work networks. Concurrently, providing speculators with an ample arbitrage opportunity and the ability to hedge against unique market dynamics.
Digital asset issuance relies on proof of work consensus. Production capacity and value of goods produced of any one network participant is a multi-variable problem with continuous fluctuations.
The goal of this research is to model the market dynamics impacting these new instruments and designing levers to mitigate adverse effects.

Faculty Supervisor:

Michèle Breton

Student:

Partner:

Pow.re Corporation

Discipline:

Mathematics

Sector:

Finance and Insurance

University:

HEC Montréal

Program: