Standard Sats — is a service solving the high volatility of bitcoin against the euro by hedging. It is an independent bitcoin bank for geographically-distributed communities or businesses. The product consists of an open-source protocol client (mobile bitcoin wallet; modified version of Simple Bitcoin Wallet) and node. The node works on the Lightning Network. Get started — read instructions for connecting a wallet.

How it works

User installs the wallet (as of May 2022, only the Android version was available; this information may be outdated). Since the “fiat” channel opens automatically, it can be replenished with satoshis immediately after installation. The user can always open a regular channel to any Lightning node if required and if he has bitcoins in the wallet. Upon replenishing the “fiat” channel, the service locks the bitcoin price in euros, opening a position on the exchange Kollider. The user sees a disposable amount in euros in the wallet, which does not depend on the exchange rate of bitcoin. Thus, a new bitcoin-derived asset is created, comparable to a personal stablecoin. Watch the video of such a wallet.

Use cases

• A private entrepreneur accepts payment for work in eurobitcoins, securing the ability to pay current bills for housing, food, insurance, etc.
• A man without a bank account from Montenegro buys a certain product for euros from a colleague in Germany sending it by mail. The advance payment for the goods is transferred using Standard Sats. The buyer of the goods is insured against a drop in the bitcoin price.

Links

1 - Bitcoin Beach: What Happened When an El Salvador Surf Town Went Full Crypto

2 - Liquidity abstraction in Lightning Network