pull down to refresh

0 sats \ 3 replies \ @jerry OP 4 Aug 2022 \ on: Kollider Pay - Synthetic USD/ EUR on LN bitcoin
Can someone explain how does this work behind the scene? Thanks!
write
preview
26 sats \ 0 replies \ @DarthCoin 4 Aug 2022
simple: give me your sats (real money) and I will give you fake money HFSP
reply
3 sats \ 1 reply \ @TheBTCManual 16 Aug 2022
Probably the same way galoy does it by opening up a long/short position and then using those contracts backed by the sats sent to the exchange to ride the volitatility
Again, only really a product for traders, people who want to hold dollars that aren't interoperable with other dollars makes very little sense
reply
3 sats \ 0 replies \ @ProofOfCash 16 Aug 2022
You can spend sats from the USD account or send USD to other Kollider Pay accounts. The thing that changes between BTC and USD accounts is the unit of account -- so if you deposit to the USD account 5000 sats and that's the exchange rate for $1, your USD account stays at $1. if bitcoin halves in price, you have 10000 sats in the USD account spendable. Goes the other way of course, but that's why you have multiple accounts. You choose your allocation of holdings, and if you want protection on a potential price drop you can secure it.
reply