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0 sats \ 3 replies \ @om 21 Jun 2022 \ parent \ on: StandardSats SBW -- LN wallet with Fiat-denominated custodial channels -- now available on Google Play bitcoin
This is true for any stablecoin or bank account or even cash. They all require trust.
There're completely different levels of trust involved in cash and in this kollider thing that is not even released yet plus the extra custodian on top. This is not a match at all.
Fiat channels are a realistic solution as long as you trust the custodian.
That's a massive assumption. Realistically right now people seem to use USDC and USDT on Tron or elsewhere. Of course the blockchains don't have quite the speed of LN but then if you need to go to the exchange every time you pay then you don't have LN speed anyway. So people should just continue to use USD* on cheap chains until Taro gets implemented.
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0 sats \ 2 replies \ @notgeld OP 21 Jun 2022
kollider thing that is not even released yet plus the extra custodian on top.
It was selected due to several reasons:
  • allow people to deploy their own nodes with hedging (no-KYC, API enabled, LN exchange)
  • suitable contracts. Anyone who wants to run Fiat Channels for themselves could enjoy higher capital efficiency and approximately zero funding fees
Tron or elsewhere.
You probably do not know that transactions on TRON may be failed or reverted.
Also why Taro is better than native synthetic asset already available.
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0 sats \ 1 reply \ @om 21 Jun 2022
You probably do not know that transactions on TRON may be failed or reverted.
Sure, also USDC can freeze addresses by government request. But few people care.
Also why Taro is better than native synthetic asset already available.
The key word here is "synthetic", in other words, this asset is an algorithmic stablecoin less battle tested than Terra. The problem is you can't synthesize more value than the underlying asset (bitcoin) has. For example, suppose people send 10M$ worth of BTC into Kollider and mint synthetic $ with it, but then BTC goes down 10x. Is there 10M$ value still in the $ tokens? Of course not. This is when you activate HODL mode for everybody.
Taro will allow normal non-synthetic tokens like USDC and USDT to circulate on LN. That is the way.
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0 sats \ 0 replies \ @notgeld OP 21 Jun 2022
There is enough depth in perpetuals, not only on Kollider. And of course, users shouldn't use fiat-denominated liquidity for store their wealth there.
And Fiat Channels may work with bearer stables as well.
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