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, SBW) and node. The node works on the Lightning Network. Get started — read instructions for connecting a wallet.
User installs the wallet (as of May 2022 only the Android version is available). 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.
Yes, “fiat” channels are managed by the Standard Sats project by default and the service administrator can steal your bitcoins. You can install the software on your server to administer it for yourself.
Stablecoins are usually issued by a centralized issuer. In the case of Tether, it is a Panama bank. They are fiat money guarantees that require the trust of the issuing bank. While the synthetic assets in a broad sense do not have a centralized issuer.
Any tokens stored on an exchange are subject to the risks of hacking or bankruptcy of the exchange. In general, this is called counterparty risk. Unfortunately, you cannot use the capital markets that exchanges provide without this risk. Assess your risks yourself by deciding to install software and open a personal account in exchange for its operation. Alas, in the more than 10-year history of the existence of Bitcoin, we can count many precedents for hacking and bankruptcy of exchanges.
The founders are developers Ilya Evdokimov and Anton Gushcha, who created a product prototype in November 2021 as part of a banking hackathon. The development of the project is self-funded. You can send donations via the Lightning Network to email@example.com. Follow the link if your wallet does not support Lightning Address.
By installing the Standard Sats software, the user becomes the host administrator and can earn routing fees in the Lightning network. However, Standard Sats is not responsible for the actions of the user or the exchange used for hedging. Also, payment routing income is not guaranteed.
Yes. As of May 2022, the project has been deployed in MonteLibero community.
The software in Standard Sats repository is provided “as is”, without warranty of any kind, explicit or implied. You use this software at your own risk. The author of the program will not be responsible for any loss or corruption of data, disruption of other programs and systems, as well as for any profit lost in the process of using or misusing this software product.