Settlement is via Lightning, but it's not a Layer 3 because it offers no cryptographic guarantees, it requires trust to the mint operator. And yes, it scales insanely well.

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As I see it we have a layer of bitcoin when theres deterministic assurance to obtain your sats as a utxo to your address (minus some fees) in every case if you don't commit errors.

If someone can rug you, its not a bitcoin layer, is a custodian layer.

yeah I agree