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Lambda Farming Hub Protocol (FHP) and Automatic Lending Protocol(ALP)

Brief Introduction

Farming Hub Protocol (FHP) is based on Automated Lending Mechanism (ALM) to realize a brand new storage mining business model on the market of Farming Hub on Lambda mainnet.

Automated Lending Mechanism (ALM)

Automated Lending Mechanism (ALM) is an innovative and decentralized lending mechanism, to implement the automatic lending function on Lambda chain. In the market of farming hub, storage miners can directly use insurance fund for storage mining which supporting by ALM safely and efferently.

Features:

1)Reduce mining costs for storage miners

2)Low rate of lending cost on DeFi

3)Ensure digital assets security

With the support of the Automatic Lending Mechanism (ALM), Lambda automatic Farming Hub Protocol (FHP) is the hub of financial lending, mining cooperation, and cloud computing power businesses. Users who provide compensation in insurance fund pool, and storage miners provide valid storage computing power on chain, that based on ALM on Lambda chain complete mining cooperation business through the FHP, this make the new era of storage mining meaningful.

In the new brand-new farming hub business, storage miners can directly access the storage computing power into the farming hub market on the Lambda chain, and token holders place their funds into the insurance fund pool designated by the Farming Hub Protocol (FHP). Lambda digital assets are protected by the user’s private key, and assets ownership will not be transferred which driven by automatic lending mechanism (ALM).

The principle of Farming Hub Protocol (FHP)

Lambda Farming Hub Protocol (FHP) generates farming hub business, that combine DeFi and decentralized storage brand-new mining business innovatively.

The farming hub business in the market of farming hub are consists of four divisions on Lambda block chain, which are insurance fund pool, Vault, users with insurance fund and storage miners.

The farming hub market is a specific market, which have two parties (storage miners and users with insurance fund) to join.

Insurance Fund Pool

The compensation LAMB in the insurance fund pool deposited by users with insurance fund, and the ownership is belonging to users with insurance fund. Lambda uses an innovative revenue distribution mechanism and miner credit system and revenue distribution strategy. At present, users with insurance fund provide fund will not be penalized by any miners’ behavior.

Vault

Vault belongs to the market, assets in vault are not owned by any entities. Asset security are protected by Lambda blockchain consensus.

Users with insurance fund and storage miners can withdraw revenue from their vault respectively according to resources input on the chain.

On-chain behavior of users with insurance fund:

  1. LAMB lending to the insurance fund market;
  2. Withdraw revenue from vault;
  3. Users can quit from insurance fund pool by quantities.

On-chain behavior of storage miners:

  1. Declare storage mining capacity to the insurance fund market
  2. Withdraw revenue from miner’s vault

Farming Hub Revenue Model

Total user’s revenue in insurance fund:S* (Q / (M + Q))

Storage miner’s revenue: S* (M / (M + Q))

Example:

Total quantity in insurance fund pool: M=1000 LAMB

The valid computing power in the market:N=50 GB

The lending unit of computing power: P=10 LAMB/GB

The total mining output in the market: S=200 LAMB

Valid lending:Q = P*N =500 LAMB

User’s revenue with insurance fund: S * (Q / (M + Q)) = 200 * (500 / (1000 + 50*10)) = 66.67 LAMB

Storage miner’s revenue: S * (M / (M + Q )) = 200 * (1000 / (1000 + 50*10)) = 133.33 LAMB

Summary

According to the farming hub revenue model, since X >= W, miners’ ​​mining revenue is relatively increase in the early stage. As more and more miners for lending, W is approximately equal with the value of X. At this time the ratio of both parties of the mining revenue of lending pool approaches 1:1. If W> X, the ratio towards to the borrower, and theoretically more people will join as the borrower. If the total amount from borrower X= 0, all LAMB is mined which will lend in vault.

The Lambda FHP will be fully open to the Lambda community, empower to third-party platforms, and welcome more DeFi projects based on Lambda, or Ethereum, Heco, BSC, Polkadot and other platforms for protocol integration. At present, we are working closely with Transgo platform and will soon release based on a Lambda Farming Hub Protocol’s deposit market and lending market.

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Lambda is a secure, reliable, and infinitely scalable decentralized storage network that enables data storage, data integrity check, security verification, and marketplace for storage-related services on the Lambda Chain Consensus Network.

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Lambda

Lambda

Lambda is a fast, secure and scalable blockchain infrastructure project. A disruptor in blockchain-base storage solution.

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