Stable Channels is a wallet and technology that lets users peg a portion of their bitcoin to a dollar balance.
The Stable Channels Desktop Wallet runs a full Lightning node that lets users stabilize the money that they send to themselves during onboarding.
The LSP/Server keeps the user stable by overcollateralizing the Stable Channel at the time of channel creation. Each user (the stability receiver and the the LSP/stability provider) puts in the same amount of bitcoin, the stability mechanism is activated.
The stability mechanism works like this: each node queries four exchange price feeds every minute. Based on the updated price, they adjust the channel balance with their counterparty to keep the stability receiver's balance at a fixed dollar value (e.g., $100,000 of bitcoin).
Both parties remain self-custodial and can opt out anytime via cooperative or forced on-chain channel closure.
The project is in-progress and is based on LDK Node. Prior versions were compatible with LND and CLN. These legacy implementation can be found in /legacy.
Links with examples:
- Basic example: Twitter thread
- In-depth discussion: Delving Bitcoin
- Project website: StableChannels.com
You can check out the latest builds for MacOS, Windows, or Linux here - https://github.com/toneloc/stable-channels/releases
To run the app from this source, please install Rust on your OS.
Using a fresh Ubuntu? You may need to install OpenSSL libraries. sudo apt-get install -y pkg-config libssl-dev and curl.
Clone the repo git clone https://github.com/toneloc/stable-channels and cd into it.
Run cargo run --bin stable-channels user. This will start the app on mainnet. Pay the invoice and you are good to go.
Check out logs, key files, and other information in /data.
Every 30 seconds, the price of bitcoin:
-
(a) Goes up:
- Stable Receiver loses bitcoin.
- Less bitcoin is needed to maintain the dollar value.
- The Stable Receiver pays the Stable Provider.
- Stable Receiver loses bitcoin.
-
(b) Goes down:
- Stable Receiver gains bitcoin.
- More bitcoin is needed to maintain the dollar value.
- The Stable Provider pays the Stable Receiver.
- Stable Receiver gains bitcoin.
-
(c) Stays the same:
- No action required.
Note: Stable Channels are currently non-routing channels. Work is ongoing to add routing and payment capabilities.
Each side puts in 1 BTC at $100,0000.
Abbreviations:
- SR = Stable Receiver (targeting $100,000)
- SP = Stable Provider
- Δ = Delta / Change
| Price Change (%) | New BTC Price | SR (BTC) | SR (USD) | SP (BTC) | SP (USD) | SR Fiat Δ$ | SR BTC Δ | SR Fiat Δ% | SR BTC Δ% | SP Fiat Δ$ | SP BTC Δ | SP Fiat Δ% | SP BTC Δ% |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| -30 | 70,000.00 | 1.43 | 100,000.00 | 0.57 | 40,000.00 | 0.00 | +0.43 | 0% | +42.86% | -60,000.00 | -0.43 | -60.00% | -42.86% |
| -20 | 80,000.00 | 1.25 | 100,000.00 | 0.75 | 60,000.00 | 0.00 | +0.25 | 0% | +25.00% | -40,000.00 | -0.25 | -40.00% | -25.00% |
| -10 | 90,000.00 | 1.11 | 100,000.00 | 0.89 | 80,000.00 | 0.00 | +0.11 | 0% | +11.11% | -20,000.00 | -0.11 | -20.00% | -11.11% |
| 0 | 100,000.00 | 1.00 | 100,000.00 | 1.00 | 100,000.00 | 0.00 | 0.00 | 0% | 0% | 0.00 | 0.00 | 0% | 0% |
| 10 | 110,000.00 | 0.91 | 100,000.00 | 1.09 | 120,000.00 | 0.00 | -0.09 | 0% | -9.09% | +20,000.00 | +0.09 | +20.00% | +9.09% |
| 20 | 120,000.00 | 0.83 | 100,000.00 | 1.17 | 140,000.00 | 0.00 | -0.17 | 0% | -16.67% | +40,000.00 | +0.17 | +40.00% | +16.67% |
| 30 | 130,000.00 | 0.77 | 100,000.00 | 1.23 | 160,000.00 | 0.00 | -0.23 | 0% | -23.08% | +60,000.00 | +0.23 | +60.00% | +23.08% |
Thanks to countless open-source bitcoin developers and organizations who have made this work possible. Satoshi Lives!
Thanks to all of the Lightning Network core developers, and all of the bitcoin open-source devs on whose giant shoulders we stand.