mariusaab on Nostr: 🥕Taproot Assets allowing stablecoins is nice... But is it the best solution to ...
🥕Taproot Assets allowing stablecoins is nice...
But is it the best solution to exchange dollars💵 over Bitcoin and Lightning⚡️Network?
❗️Spoiler: No
Stablecoins like USDT over Bitcoin is only a bit better of USDT over Ethereum or Solana.
Even though Bitcoin is more censorship resistant than all its (pale) copies, Tether and Circle are the custodians of the dollar you think you own, and if they choose, or if they are forced too, they will freeze your funds.
Moreover, Lightning Service Providers (LSPs) could become regulatory and technological choke points.
If LSPs are influenced or strictly regulated, they might compromise ⚡️LN's decentralization and users sovereignty by enforcing compliance👩⚖️ KYC 🪪 and regulated stablecoin issuers over the ⚡️Lightning Network could even, by choice or regulation, prohibit their assets from transiting through unknown nodes 🪢
So, what is the solution to avoid censorship?
👉 1 answer, 3 letters : DLCs
Discreet Logs Contracts (DLC) enable P2P 🤝derivative positions over #Bitcoin and Lightning⚡️
They allow users to open/close positions, like shorts 📉, on BTC vs. USD. This stabilizes portfolio value by offsetting BTC volatility.
How to use them?
👉1 answer, 5 bits : 10101
10101 creates USDP, a BTC derivates that keeps the value of USD. (https://10101.finance/)
USDP, once fully launched, will be more sovereign 👑 more secure 🔒 more censorship resistant 🏦 than any stable asset ever create 💵 (yes more than US banknotes).
Sources:
🇫🇷 https://cryptoast.fr/stablecoins-tokens-fongibles-bitcoin-lightning-network-revolution-bonne-nouvelle/
🇬🇧 https://lightning.engineering/posts/2024-07-23-taproot-assets-LN/
But is it the best solution to exchange dollars💵 over Bitcoin and Lightning⚡️Network?
❗️Spoiler: No
Stablecoins like USDT over Bitcoin is only a bit better of USDT over Ethereum or Solana.
Even though Bitcoin is more censorship resistant than all its (pale) copies, Tether and Circle are the custodians of the dollar you think you own, and if they choose, or if they are forced too, they will freeze your funds.
Moreover, Lightning Service Providers (LSPs) could become regulatory and technological choke points.
If LSPs are influenced or strictly regulated, they might compromise ⚡️LN's decentralization and users sovereignty by enforcing compliance👩⚖️ KYC 🪪 and regulated stablecoin issuers over the ⚡️Lightning Network could even, by choice or regulation, prohibit their assets from transiting through unknown nodes 🪢
So, what is the solution to avoid censorship?
👉 1 answer, 3 letters : DLCs
Discreet Logs Contracts (DLC) enable P2P 🤝derivative positions over #Bitcoin and Lightning⚡️
They allow users to open/close positions, like shorts 📉, on BTC vs. USD. This stabilizes portfolio value by offsetting BTC volatility.
How to use them?
👉1 answer, 5 bits : 10101
10101 creates USDP, a BTC derivates that keeps the value of USD. (https://10101.finance/)
USDP, once fully launched, will be more sovereign 👑 more secure 🔒 more censorship resistant 🏦 than any stable asset ever create 💵 (yes more than US banknotes).
Sources:
🇫🇷 https://cryptoast.fr/stablecoins-tokens-fongibles-bitcoin-lightning-network-revolution-bonne-nouvelle/
🇬🇧 https://lightning.engineering/posts/2024-07-23-taproot-assets-LN/