To various extents yes. Obviously there needs to be a way to liquidate the loan, but there are many good approaches. Firefish locks your collateral in 3-of3 a multisig with liquidator (see their protocol documentation, it is open). Liquidation oracle has pre signed transaction to the liquidator, so the oracle can't sell it or move your coins anywhere else.
Another approach is through futures, there are also many options, you control your risk appetite vs convenience. For example with 10101 you get a DLC channel. In both of these you see your coins in a UTXO, so you can verify at all times it's not moving (Celsius was gambling with user funds).
Another option that would work is taking the other side of stablesats channel. Not sure in anyone tried that.
Also note that the alternative is selling your sats, which is the ultimate loss of custody.
juraj / Juraj
npub1m2…lr8p9
2024-08-24 09:55:29
in reply to nevent1q…3u96
Author Public Key
npub1m2mvvpjugwdehtaskrcl7ksvdqnnhnjur9v6g9v266nss504q7mqvlr8p9Published at
2024-08-24 09:55:29Event JSON
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"content": "To various extents yes. Obviously there needs to be a way to liquidate the loan, but there are many good approaches. Firefish locks your collateral in 3-of3 a multisig with liquidator (see their protocol documentation, it is open). Liquidation oracle has pre signed transaction to the liquidator, so the oracle can't sell it or move your coins anywhere else. \n\nAnother approach is through futures, there are also many options, you control your risk appetite vs convenience. For example with 10101 you get a DLC channel. In both of these you see your coins in a UTXO, so you can verify at all times it's not moving (Celsius was gambling with user funds). \n\nAnother option that would work is taking the other side of stablesats channel. Not sure in anyone tried that. \n\nAlso note that the alternative is selling your sats, which is the ultimate loss of custody.",
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