It's a credit instrument. Not exactly a shitcoin but two deviations away from base chain Bitcoin.
Discussion
It does nothing that lightning can’t do
Asynchonous payments is one thing, loans is another but regardless, I don't like a layer three at this point either. I am just saying it's not a shitcoin, definitionally.
I know I’m retarded but how does it help with loans?
And I know it’s not a shitcoin but as far as I can tell it’s basically like a treasury note (but it is backed 1:1 by Bitcoin). It’s just fun to call things shitcoins
So, you hold Lightning in escrow to a cashu mint. The mint distributes (in a loan) those cashu tokens against the locked up lightning funds. This allows fully collateralized loans without having to confirm it on chain.
Think of it this way:
>Anything you can do with gold, you can do with Bitcoin.
>Anything you can do with cash, (pre-1971) you can do with lightning.
>Anything you can do with credit, you can do with Cashu.
Credit is a loan instrument by its nature.