How its done: financial engineering.

Benefit: “stable” value in synthetic USD.
This is important for a subset of customers who cannot afford to assume the short term volatility downside. 

 And what does financial engineering mean? 😏 

 Fugezi fugaziii 

 “To create the synthetic USD, Stablesats uses a financial instrument invented by the BitMEX cryptocurrency exchange called a perpetual inverse swap using perpetual futures contracts. Futures contracts are a type of agreement to buy or sell a specific asset (such as bitcoin) at a set future date for a set price. Perpetual futures contracts differ in that they are perpetual and don’t specify a future date.”

Example 

 In the words of Jack: “words” 

 That still doesn’t make sense. How does selling bitcoin at a future date at a set price stabilize your synthetic USD? 

 Yup, it’s not my world either. Maybe @El Flaco can explain it to us 

 sounds like “printer go brrrrrr” 

 Backed by Bitcoin.. we do it in the right way...! 

 famous last words. 

 I’m not saying this is not legit, but I don’t understand the stabilization mechanism. Would love to see a plain English explanation without financial speak gobbledygook obfuscation. 

 Yes. Catchphrase, bandwagon, marketing lingo free pls. 👍 

 100%. Lots of people cannot and do not use sats because they are not rich enough like Saylor to Hodl forever. they need the money in weeks or months time. So stabilizing the sats and not using anything like USDT or treasuries greatly reduces risk.  

 Great question. thanks for asking. Please check out https://umint.cash/ there are 2 pages on top. 1) Proof of reserves which is what we use to stabilize the sats to dollars and 2) Proof of liabilities which shows the outstanding tokens. By seeing this info in real-time you know the mint is solvent. 

Stable channel is a simple channel between a mint and a stable provider. The mint is stable while the stable provider sats goes up and down every 5 mins to balance the stable side. The history table shows how it is done. 

lmk for additional questions.