pull down to refresh

100 sats \ 1 reply \ @kr 11 Jul 2023 \ on: We are the co-founders of Atomic.Finance, AMA. (Non-custodial BTC yield) bitcoin
what are the underappreciated use cases for DLCs that most bitcoiners haven’t recognized yet?
write
preview
276 sats \ 0 replies \ @matthewjablack 11 Jul 2023
  1. I think stablesats is a huge one. The basic idea for stablesats, is you enter a short position with your Bitcoin, which is equivalent to holding USD.
This would eliminate the need for stablecoins with significant systemic risk.
And to send them to people, you simply close the DLC, send funds over lightning, and the recipient also opens a DLC short position.
Capital efficiency will likely be the challenge with this one.
  1. Basic hedging. Lots of Bitcoin companies need to hedge their positions, which DLCs can be used to do. Instead of risking your company's funds on a centralized exchange, they should just be using DLCs to do this (and removing the custody risk). Of course there's no market built for this yet.
reply