I assume you are already aware of the general use case for trading.

The use case for a self-custodial on-chain and off-chain wallet is that it gives users full control over their assets and eliminates the need to trust a third party with their private keys, i.e. it is self-custodial!

In 10101, we add an additional feature to the wallet which allows users to trade right out of their lightning channel without having to trust their counterparty. A positive side effect of the derivatives we are offering is that if you are shorting Bitcoin, you are stable in USD terms. This results in the creation of a synthetic stablecoin that does not require trust in the issuer, such as Tether or Circle.

Trades (and Stablesats) are always fully collateralized and users can be sure that they will be able to retrieve the profits.

This is particularly useful for individuals who prioritize security and privacy in their financial transactions.

By keeping control of their own keys, users can ensure that their assets are always under their own control and cannot be compromised by hacks or malicious actors (e.g. FTX, MtGox, etc). This allows for more secure and decentralized trading.

We believe that a synthetic stable coin (Stablesats) and self-custodial trading can help to increase user adoption of Bitcoin itself.