A one dollar stablesats cashu token is a troken that is always redeemable for one dollar worth of bitcoin.
This is accomplished by matching two people with opposite projections on bitcoin. The dollar-token holder is shorting bitcoin, and the mint's channel partner is longing bitcoin.
When bitcoin goes up, you end up with less bitcoin but always a dollar's worth. When bitcoin goes down, you end up with more bitcoin but at least a dollar's worth. The stablesats channel partner is on the other end of this open-ended trade.
https://stablesats.com/#how-it-works
Here is a graphic showing how a token is created.
https://umint.cash/_next/image?url=%2F_next%2Fstatic%2Fmedia%2Fcashu-arch.9bafd660.png&w=3840&q=75
Brunswick
npub1c8…q6lkc
2024-07-09 18:16:28
in reply to nevent1q…7m64
Author Public Key
npub1c856kwjk524kef97hazw5e9jlkjq4333r6yxh2rtgefpd894ddpsmq6lkcPublished at
2024-07-09 18:16:28Event JSON
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"pubkey": "c1e9ab3a56a2ab6ca4bebf44ea64b2fda40ac6311e886ba86b4652169cb56b43",
"created_at": 1720548988,
"kind": 1,
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"content": "A one dollar stablesats cashu token is a troken that is always redeemable for one dollar worth of bitcoin.\n\nThis is accomplished by matching two people with opposite projections on bitcoin. The dollar-token holder is shorting bitcoin, and the mint's channel partner is longing bitcoin.\n\nWhen bitcoin goes up, you end up with less bitcoin but always a dollar's worth. When bitcoin goes down, you end up with more bitcoin but at least a dollar's worth. The stablesats channel partner is on the other end of this open-ended trade.\n\nhttps://stablesats.com/#how-it-works\n\nHere is a graphic showing how a token is created.\nhttps://umint.cash/_next/image?url=%2F_next%2Fstatic%2Fmedia%2Fcashu-arch.9bafd660.png\u0026w=3840\u0026q=75",
"sig": "6c4147765206b87daf6fd6f17412538dd8ae3cc83ef6775cb844692c544747011668e7a8285616e69473188e9fd3097830844a4f351b4c7bd0005c5fe0248c00"
}