Brunswick on Nostr: A one dollar stablesats cashu token is a troken that is always redeemable for one ...
A one dollar stablesats cashu token is a troken that is always redeemable for one dollar worth of bitcoin.
This is accomplished by matching two people with opposite projections on bitcoin. The dollar-token holder is shorting bitcoin, and the mint's channel partner is longing bitcoin.
When bitcoin goes up, you end up with less bitcoin but always a dollar's worth. When bitcoin goes down, you end up with more bitcoin but at least a dollar's worth. The stablesats channel partner is on the other end of this open-ended trade.
https://stablesats.com/#how-it-works
Here is a graphic showing how a token is created.
https://umint.cash/_next/image?url=%2F_next%2Fstatic%2Fmedia%2Fcashu-arch.9bafd660.png&w=3840&q=75
This is accomplished by matching two people with opposite projections on bitcoin. The dollar-token holder is shorting bitcoin, and the mint's channel partner is longing bitcoin.
When bitcoin goes up, you end up with less bitcoin but always a dollar's worth. When bitcoin goes down, you end up with more bitcoin but at least a dollar's worth. The stablesats channel partner is on the other end of this open-ended trade.
https://stablesats.com/#how-it-works
Here is a graphic showing how a token is created.
https://umint.cash/_next/image?url=%2F_next%2Fstatic%2Fmedia%2Fcashu-arch.9bafd660.png&w=3840&q=75
