5.7 Synthetic Assets with DLC in Bitcoin Lightning Network
Wasabi Wallet
DLCs embedded in Lightning channels hold collateral from both parties to enforce trustless synthetic assets, replacing a trusted intermediary with on-chain DLC logic. Parties exchange payments as Bitcoin price moves to maintain fixed fiat value (stable nauticoins); the DLC automatically confiscates collateral if either party misbehaves. This trades counterparty trust for oracle trust—already requi

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