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

Exploring Synthetic Stablecoins | 10101 - Decentralised finance. For real.

At 10101, we are dedicated to developing a cutting-edge self-custodial synthetic stablecoin powered by Discreet Log Contracts (DLCs).

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

X (formerly Twitter)

Volcano Energy 🇸🇻🌋🔌 (@Volcano_Energy) on X

Exciting news! DitoBank's digital wallet with Mastercard for Bitcoin (BTC) and USD Coin (USDC) payments is now available to all Salvadorans, aged 1...

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! @ck @gladstein