Appreciate the kind words and the support! We also agree on the USDC and USDT part. To your questions"
The synthetics and the backend of the wallet are actually handled in an open source project that we maintain. Its called Lndhubx and you can find it here: Anyone can deploy this and issue their own synthetics. This would also work for a single person who has a node and wants to hedge some of their node balance.
Yes we think so. DLC's are quite promising. However there is a lot to learn as well in terms of behaviour of these synthetics as well as building up the liquidity. Right now we think that the most important thing is to get people in as smoothly and easily as possible. Once DLC's are ready and battle tested we can just swap out the backend, users and liquidity providers will be there in masses. Also as mentioned above, part of the counterparty risk can be mitigated by just plugging into many exchanges, not just Kollider. For example, you could hedge part of your synthetic on Kollider, some on Okex, some on Deribit and so on. Distribute the risk. We think this can already make a meaningful difference if shit hits the fan with any of those. You could have a DAO with an insurance fund that pays out if one of them vanishes.
There are 3 scenarios where a depeg occurs: a. Bitcoin price tanks and longs get liquidated to a point where buy liquidity vanishes and no one takes on these short (synthetic stable coin holders). In this scenario Kolliders risk engine will deleverage everyone and synthetic stable coin holders will be paid back Bitcoin of the amount of synthetics they hold at that time. b. Exchange gets hacked or disappears. c. Long periods of negative funding. For a) and c) we think that a model where there is an insurance fund that is managed by a DAO could mitigate the damage of these scenarios by paying for the losses. For b) using a basket of different venues could significantly de-risk this scenario.
Thank you for the thoughtful answer!