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What do you think about Synthetic USD that is backed by DLCs ?
100 sats \ 3 comments \ @AR0w 6 Sep 2023 bitcoin
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https://imgprxy.stacker.news/TnQxmE8mat6Q9fTemWYjZJleUVHJCwNDIzc16mDXNPg/rs:fit:600:500:0/g:no/aHR0cHM6Ly9pbWFnZS5ub3N0ci5idWlsZC8xZjkwYmY3YTViYzE4OWE2N2VjYjZkYTYzZDA5MGU2YTRkZDZkMzFjYjIxODg1ZDlhNmU1ODc1OWUwYWVhNTNkLmpwZwhttps://imgprxy.stacker.news/75bGHoYg7_WBnO3Vfz5gLEEcyFoM4xFflNpF6sDlHxs/rs:fit:600:500:0/g:no/aHR0cHM6Ly9pbWFnZS5ub3N0ci5idWlsZC9lNzNhN2RlYzBkNTUyYTY3ZjhmOTgwYWJmMDM2OTY3MDgxNjZmYTg4NjI3ZmFlOGY3N2VlNWYzYjQ5ZDI3ODFkLmpwZw
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20 sats \ 2 replies \ @nerd2ninja 6 Sep 2023
I think that it looks like counter-party risk
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0 sats \ 1 reply \ @fanis 9 Sep 2023
Quite the opposite actually. Synthetic dollars using derivatives usually incur a counterparty risk, but this is exactly what DLCs address. The outcomes of the contract are signed by each participant. Hence when the oracle reveals the outcome, the winning side of the contract can claim the funds on its own, without any intervention from their counterparty.
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0 sats \ 0 replies \ @nerd2ninja 9 Sep 2023
How many price APIs are in use? Who's computers do the output of each of those API calls return to? How are disagreements about API output returns between those computers resolved?
I feel like I remember this one, but I do always forget the details because there's just so many methods out there that are being developed, but right this is not the stable sats implementation, I think this is the one that uses oracles right? So then you go into "How are oracles selected" and the answer is usually that its a permissioned federation to which I then point out that this is still counter-party risk, its just counter-party risk that has been mitigated using some method or something.
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