The mint uses DLCs instead of an exchange to stabilize its balance. That way you open the door to offer this service by anyone who can participate in Bitcoin (everyone!).
Discussion
Sorry, I still don't understand.
The mint (= some dudes who give out tokens for ... whatever reason. It could be for lightning payments or for goods and services or for fiat payments) issues IOUs. The number of tokens might be one per sat or one per dollar equivalent according to this and that exchange or according to that non-exchange index provider aka oracle? How does a DLC improve anything?
To my understanding, a DLC works as follows:
* We lock up funds with this script
* An oracle is needed that publishes hashes for opposing events and only the pre-images of actual occurring events
* With pre-image of hash A, it can be spent in one way
* With pre-image of hash B, it can be spent in another way
Who pays into this DLC contract? Where does the contract pay to?