Kollider Lightning wallet lets you peg your Bitcoin balance to fiat currency \ stacker news ~bitcoin

Kollider Lightning wallet lets you peg your Bitcoin balance to fiat currency pay.kollider.xyz/

621 sats \ 14 comments \ @leonardo 15 Aug 2022 bitcoin

112 sats \ 0 replies \ @02d10975a1 15 Aug 2022

This is really cool. However, the app should explain how it works, otherwise it's very confusing. I think it's a custodial service which uses hedged positions on kollider.xyz to create synthetic assets, i.e. synthetic USD contains equal size long and short positions on BTC, which keeps it pegged to USD.

35 sats \ 0 replies \ @leonardo OP 15 Aug 2022

From Kollider Telegram group:

Hi folks 👋

We are currently running an open alpha program with a new product we’re planning on launching. It is called Kollider Pay (https://pay.kollider.xyz) and it's a custodial lightning wallet that enables you to peg your Bitcoin to a fiat currency (USD & EUR). It uses the Kollider perpetual swaps on the back to achieve this. It is very similar to Galoys Stablesats project - you can read up on it here https://stablesats.com/.

The entire project UI + Backend is open source and lives here: https://github.com/kolliderhq/lndhubx and our intention with this is to raise awareness of what cool things are possible with perpetual swaps and the Kollider API. If you’re an open source developer that is interested in Rust and/or Next.js feel free to contribute! If you want to run your own instance of Lndhubx and run into problems let us know!

If you’re interested in taking the app for a spin, a live version can be found here (https://pay.alpha.kollider.xyz). It is very early days and there are bound to be bugs and missing UI features. Nevertheless, we believe that now is a good time to start the feedback cycle. So if you have any suggestions for features, improvement ideas or find any bugs you can post them here or on our Canny board (https://kollider-pay.canny.io/).

Since it's just an alpha version we currently limit the sats you can deposit to very small amounts. However, even then, don’t be reckless!

pay.kollider.xyz (https://pay.kollider.xyz/) Kollider Wallet Synthetic stablecoins.

0 sats \ 0 replies \ @cryptocoin 15 Aug 2022

For additional comments on this, see an earlier post, here on SN (and note the link to Kollider from this post has a button that reads "Try out Alpha!", so while they have a nice new page it's the same service mentioned earlier).

Kollider Pay - Synthetic USD/ EUR on LN #54343 https://pay.alpha.kollider.xyz

1 sat \ 1 reply \ @AJ1992 15 Aug 2022

I'm a little confused..

163 sats \ 0 replies \ @cryptocoin 15 Aug 2022

It's a synthetic fiat. Kollider offers options contracts. So by paying $100 BTC to short $100 worth of a BTC/USD "perpetual swap" position at 1:1, you essentially have a (relatively) stable USD. When the BTC/USD value goes up your short position loses value but the BTC goes up at the same rate. At any point in time your position should be worth around $100.

There was a post earlier in the year where Kollider explains these:

Synthetic Stablecoins on Lightning #12413 https://twitter.com/kollider_trade/status/1496507594214723590 https://nitter.it/kollider_trade/status/1496507594214723590

This is not without risk, as Kollider is custodian, firstly (not your keys, not your coins), and there's volatility risk -- where either a price spike or a selloff is so brisk where your position is out of balance due to reasons that happen in times of wild volatility, and your short position gets closed. That would be bad.

Or, if Kollider is hacked or otherwise exploited. This would be relevant reading, on that topic:

The Kollider Exchange, Two Attacks Later #43096 https://notgeld.medium.com/the-kollider-exchange-two-attacks-later-225d4e88e579

Also,Kollider is (currently) what StandardSats uses to offer their synthetic stable as well.

StandardSats SBW -- LN wallet with Fiat-denominated custodial channels -- now available on Google Play #37578 https://play.google.com/store/apps/details?id=com.btcontract.walletfiat

What is the Lightning Network? Lightning-native synthetic assets #16742 https://standardsats.github.io

0 sats \ 0 replies \ @ken 16 Aug 2022

Doesn't selling Bitcoin for fiat have the same effect?

0 sats \ 0 replies \ @BlokchainB 16 Aug 2022

This needs to be battle tested. Be sad to see people get wiped out during a massive sell off

0 sats \ 1 reply \ @TheBTCManual 16 Aug 2022

Not sure why I would want USD that isnt interoperable with merchants but cool I guess

0 sats \ 0 replies \ @cryptocoin 16 Aug 2022

It protects you from exchange rate risk. just like a stablecoin does.

Like if you need to hold a part of your paycheck so that you have at least $1,000 at the beginning of next month for rent, regardless if bitcoin sees a selloff before then. So you buy (peg ?) this USD, then at the first of next month when rent is due, you sell (unpeg ?) and you have $1,000 worth of bitcoin to spend at that time. If your landlord wants cash, you still have to sell the BTC or do whatever you normally do to get cash for your bitcoin.

0 sats \ 0 replies \ @kevin 16 Aug 2022

I really like this! However, I think this would be even better if you set this up as a semi-custodial wallet where the BTC (other than the amount you need for collateral) is non-custodial and the USD is custodial.