Stable Channels - p2p Bitcoin-powered USD stability

Get USD exposure, stay in Bitcoin

Bitcoin goes up and down, but your USD value stays the same. ⚖️

Self-Custodial

Keep your keys safe on your own device 🔐.

Get stability, or go 2x long

Stable Providers are long Bitcoin 📈.

Open source

Based on the Lightning Network, Stable Channels is open source code 📝.

Dollars, on Bitcoin

100% Bitcoin, 0% Fiat

How it works: two-sided trades using native Lightning channels. ⚡

Stable Receivers keep their balance stable in dollar terms. 💵

Stable Providers go long and shoudler 2x volatility. 💪

If the price of Bitcoin goes up, the Receiver pays the Provider. ⏩

If the price goes down, the Provider pays the Receiver ⏪

Trades update Lightning fast 💸

Finance, Streaming 💸

We harness LN’s instant settlement capabilities to continually rebalance positions, ensuring the amount of Bitcoin remains stable in terms of an underlying asset. ⚖️

At-Will Agreements. Close Anytime 🔓

These agreements are at-will, meaning no future obligations for either party. This continuous settlement reduces counterparty risk in a bilateral stablecoin agreement until a counterparty decides to withdraw. 🏦

Built for Privacy. Built for Resiliency. 💼

Stable Channels offers a Bitcoin-native, self-custodial peer-to-peer stablecoin solution, minimizing risks. 🛡️

Enter Stable Channels 🚀

A new paradigm for financial markets.

Financial markets continue to demonstrate the US dollar’s staying power and Bitcoin’s potential for value appreciation. The US dollar has appreciated against every major currency over the past decade, and Bitcoin has appreciated against the US dollar. Now with Bitcoin we can offer a superior way for users to get USD and Bitcoin exposure ...

Enter Stable Channels: reimagining stablecoin utility using Bitcoin's Lightning network, providing superior payments capabiliites, and enabling unparalleled derivatives exchange capabilities.

Links and Resources

Here are some resources, demo videos, and technical deep dives to get you started with Stable Channels. You can also send us a note by clicking on the "Sign up" button at the top of the page.

Technical Deep Dive

Delving Bitcoin Post

An in-depth post on Delving Bitcoin discussing the technical and financial aspects of Stable Channels.

Podcast Interview

Stephan Livera Podcast

"Even as bitcoiners, we can’t deny that there is demand for ‘stablecoins’ or some kind of stable value feature. Tony Klausing, bitcoin and lightning developer joins me to talk about Stable Channels."

Twitter Thread

Explaining the Basics of Stable Channels

A Twitter thread by @tonklaus explaining the fundamentals of Stable Channels.

Demo Video

eCash + Stable Channels Integration

Watch a demo video showcasing the integration of eCash with Stable Channels.

Front-End Use-Cases

2-Minute Demo Video

A short video demonstrating some front-end use-cases for Stable Channels.

Conference Presentation

Bitcoin Atlantis Conference 2023

A presentation from the Bitcoin Atlantis conference discussing Stable Channels.

Stable Cashu eCash Mint

Visit Mint

The stable Cashu eCash mint that uses Stable Channels as the stability mechanism.

eCash Wallet

Connect to Stable Cashu Mint

An eCash wallet with a nice UI that can connect to the stable Cashu mint.

GitHub Repository

Stable Channels GitHub

Access the GitHub repository for Stable Channels to view the source code and contribute.

Telegram Group

Join the Stable Channels Telegram

Join the Telegram group to discuss and stay updated on Stable Channels.

Frequently Asked Questions

Answers to commonly asked questions. Reach out to us at the "Sign up" button with more questions.

What are Stable Channels?

Stable Channels is an open-source project that brings bitcoin-backed dollar balances to the Lightning network, matching BTC shorts and BTC longs over Lightning Channels.

How does Stable Channels work?

Stable Channels matches BTC shorts (fiat stability seekers) and BTC longs (fiat stability providers) and settles sats frequently based on the BTCUSD price to create a bitcoin-backed synthetic dollar balance on the stable side of the channel. The other side gets leveraged long exposure.

What problem does Stable Channels address?

Stable Channels addresses bitcoin price volatility and offers a decentralized alternative to centralized stablecoins, minimizing risks of centralization like third-party custody, hacks, bank runs, and asset freezes.

What are the key components of Stable Channels?

Stable Channels involves two types of users: Stable Receivers, who want less BTC price exposure, and Stable Providers, who want more BTC price exposure.

How often does the system settle?

The system is configurable. Stable Channels queries price feeds and settles every few minutes, using the median price from five different sources to ensure accuracy.

What happens if the BTC price goes down?

If the BTC price goes down, the Stable Provider pays the Stable Receiver. If the BTC price goes up, the Stable Receiver pays the Stable Provider. If the price doesn't move, no payment is required. If the price goes down a lot, it depends on how much collateral the Provider posts. In the base case, Stable Channels can handle a 50% drop in price.

What are the system requirements for running Stable Channels?

Stable Channels is tested on Core Lightning (CLN) and LND.
Lightning infrastructure is required to run Stable Channels
We are working on a mobile app to bring Stable Channels to more users.

Is there a marketplace matching Stable Receivers and Stable Providers?

Not yet, but if you are interested in being a Stable Provider or Stable Receiver, you can get in touch with us by clicking the "Sign up" button at the top of this page.

Is Stable Channels a stablecoin?

No, Stable Channels is not a stablecoin. Stable Channels doesn't have any tokens or assets besides bitcoin. It's more like Stablecorn.

Can I contribute to the project?

Feedback from users is greatly appreciated.
Check out our GitHub.
Get in touch by clicking on the "Sign up" button at the top of the page.

What are the risks of using Stable Channels?

Risks include extreme bitcoin price volatility, node outages, and the possibility of non-cooperative channel partners. Proper risk management, using reputable channel partners, and frequent settlement can help mitigate these risks.

What happens if the price of bitcoin drops significantly?

If the BTC price drops more than 50%, the channel may not have enough capacity to maintain stability. Cooperative actors may need to splice in additional funds to continue the agreement.

How do Stable Channels handle price feeds?

Stable Channels queries five price feeds (BitStamp, CoinGecko, Coindesk, Coinbase, and Blockchain) and uses the median price to protect against inaccuracies.

Can Stable Channels be used for assets other than USD?

Yes, Stable Channels can stabilize bitcoin against other assets like euros, gold, or the S&P 500, given reliable price feeds and liquidity.

Where can I find more information about Stable Channels?

You can find more information on the Stable Channels GitHub and join the discussion on the Stable Channels Telegram.

Who should use Stable Channels?

Stable Channels is most suitable for technical node runners, Lightning businesses, and wallet developers looking for a decentralized, easy-to-use self-custodial stability solution.

What makes Stable Channels different from centralized stablecoins?

Unlike centralized stablecoins, which rely on banks and custodians, Stable Channels is decentralized and allows anyone running a Lightning node to provide or receive stability, allowing while maintaining full self-custody.

Is the Stable Channels project funded?

No funding has been received for the project so far. Get in touch with us by clicking on the "Sign up" button at the top of the page.

How can Stable Channels be used for trading?

Stable Channels can be used for trading-related use cases, enabling functionality similar to perpetual swaps found on cryptocurrency derivatives exchanges, and allowing users to customize their preferred bitcoin exposure.

What is the role of eCash in Stable Channels?

The eCash projects are separate and distinct from Stable Channels. However, an integration with the eCash system Cashu and the wallet Boardwalk Cash has resulted in an eCash stable dollar token secured by a Stable Channel, providing scalability and UX advantages.

Still have a question?

Get in touch and let us know what's on your mind.

Get in touch

Get USD stability 💵 Stay in Bitcoin 🟠