Dampens the BTC volatility.. if you are holding BTC in your spend wallet and price goes down then your purchasing power reduces..! This is only for BTC that you want to spend.. for long term hodl, just use hardware wallet..
Discussion
So basically hedge against fiat the amount of sats you took out for something? And it involves a bit of trust placed in the mint on the other hand?
That's right if you put in $10 of sats you'd get $10 stability against BTC collateral. And involves trust in mint, correct.
Ok, so how’s the balance upheld? Someone takes the opposite position?