Replying to Avatar StarBuilder

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..
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aivii 1y ago

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?

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tonklaus 1y ago

That's right if you put in $10 of sats you'd get $10 stability against BTC collateral. And involves trust in mint, correct.

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aivii 1y ago

Ok, so how’s the balance upheld? Someone takes the opposite position?

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tonklaus 1y ago

That’s correct. The Stable Provider is taking the upside and downside risk for the Stable Receiver.

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aivii 1y ago

How is this achieved? Who's doing the settlement and is it done on daily basis? How can we be sure that the provider is not just bucketing trades?