Product is live. See for example https://firefish.io/
Discussion
Been asked to interview these guys. Need to get onto it
I wonder the counter party risk?
You lock your bitcoin. Based on that receive the fiat. Once you pay back your bitcoin will be unlocked. If you don’t pay back you can lost your locked bitcoin. It’s 2/3 multisig between you, counterparty and firefish (mediator).
If the price of bitcoin dumps you are prompted to increase collateral. In the worst case you will keep your fiat and counterparty gets your bitcoin with nice exchange rate 🥲
Yeah so there is a liquidation risk, ie Bitcoin price swings downside, and then you can get a margin call
This is a big risk
Will dig into details