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So for instance, if using fUSD, the fUSD will be backed solely by bitcoin, pegged to the dollar, and it's the user's choice as to the percentage that the collateral is backing the fUSD?

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Looks like yes.

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if I understand correctly, this is purely based of liquid network and only connection to lightning network is an atomic swap from btc to l-btc?

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Are there already oracles that can be used for this?