In this episode of the Option Plus podcast, I chat with Philipp from 10101 about trustless financial derivatives built on Bitcoin Lightning. Together, we tackle the misconceptions surrounding derivatives, highlighting their importance for risk-averse individuals – not speculation, but lowering risk. Philipp delves into the workings of 10101’s synthetic stablecoin and its distinction from others like Tether or DAI. He details how by shorting Bitcoin, one can stabilize their position in US dollars using inverse perpetual swaps, removing the need for a centralized issuer. We go deeper into the technology, exploring the role of Discreet Log Contracts (DLCs) and their potential to revolutionize transactions. While reflecting on the challenges of managing a remote-first venture and navigating regulatory waters, I discuss the blurred lines in product classification and the implications of stablecoins on the dollar economy. Additionally, we delve into the platform’s unique features and potential, such as enabling access to the whole financial system from the Lightning economy, possible integration with merchant solutions such as BTCPayserver.Links:A paper “Lightning Discreet Log Contract Channels” by me and René Pickhardt 10101 project, Twitter and Github Philipp’s Twitter @bonomat and Nostr: npub1tthrhn3mc8k6c72rn6uwfnclnlk6hcsg7lr60xfc0w3jlnxgy4jqmf5yzk ItchySats project BTCPayServer’s case study How Hodl Hodl used BTCPay to accept bitcoin payments at a conference and its technical counterpart How to enable Bitcoin payments for merchants at events using BTCPay Server Eurodollar wikipedia entry My book Cryptocurrencies – Hack your way to a better life (English my e-shop, Amazon, Spanish my e-shop, Amazon)