Is "mints" a shitcoin? Every time I hear this term I get a headache.

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I thought they were something you chewed for fresh breath?

Its a Bank with good privacy:

https://cashu.space/

Is Cashu an alternative to Lightning or works with Lightning?

Cashu works on top of Lightning. Its a implementation of chaumian ecash.

You can build a custodian with very good privacy as the Mint (the Bank) doesn't see users balances and transactions.

You can also do really neat stuff with ecash because it's literally a blob of data. E.g. attaching it to other data like putting it in an http header.

Cashu works with Lightning. It's a better way of building custodial wallets. Btw, I made LightningTipBot, I saw you mention it.

It's a better alternative to **custodial** lightning. I'd rather see people using ecash, or better yet, self custody LN.

Self custody LN > e-cash (custodial) > custodial LN

Of course, as with any custodial solution you are trusting a counterparty (the mint), only this time with better privacy.