Yesterday, we published a comparison of the solutions available to achieve USD "fiat stability" in online wallets
While it doesn't solve fiat currencies' fundamental problems, the solution we propose is a game-changer for financial inclusiveness and everyday use
A thread🧵↓
For context: we released the very first implementation of a synthetic USD, based on #Bitcoin and circulating on the #Lightningnetwork
Our stable position is valued in dollars but 100% backed by #Bitcoin, promoting the adoption of both the underlying asset AND technology
This synthetic USD is a hedging position, somewhat similar to the Stablesats concept pioneered by @GaloyMoney
However, the key difference lies in our use of Discreet Log Contracts technology, which makes this position peer-to-peer and self-custodial
https://10101.finance/blog/synthetic-stable/
For users lucky enough to come from relatively wealthy countries, with a developed and accessible banking system, holding #bitcoin is viable with a certain time horizon, and a local currency stable enough to cover daily expenses, until sats become widely accepted...
However, for many people around the world, short-term volatility is fearful and can even be destructive to daily purchasing power
In countries hit by uncontrollable inflation, such as Lebanon, we can observe USDT being used for these reasons
El Salvador's groundbreaking decision to make bitcoin a legal tender has opened up new horizons for financial freedom and inclusion
However, for the same reasons mentioned earlier, the majority of users are turning to custodial solutions
These solutions have a major advantage: they are VERY convenient and allow for receiving and sending sats, and even Stablesats (In the best case scenario)
While other solutions are just proposing a credit card for the custody of one's bitcoin or usdc
https://twitter.com/Volcano_Energy/status/1683900425919922177
Not to mention the counterparty risks, KYC processes that compromise the benefits of Bitcoin for financial inclusion & freedom, and regulatory risks that could jeopardize users' funds
This is why we believe it is important to have another option, an option empowering users
Promoting financial freedom through synthetic currencies on Bitcoin via DLCs is our mission
Our challenge : to make the experience as convenient and accessible as possible, while remaining true to our values, and to the open-source and self-custodial nature of our product
We recognize the urgent need for a "StableCoin" that is not only resistant to censorship but also devoid of centralized control, making it an ideal instrument to promote financial sovereignty and human rights
We still have a lot of work! Thanks for reading!
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