Stable Channels

The Stable Channels Wallet lets users peg a portion of their bitcoin to a dollar balance, all while staying self-custodial and 100% in bitcoin.

    

Downloads

• macOS
• Windows
• Linux

Check out the latest releases in Releases

Overview

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 by 100% at the time of channel creation. Each user (the stability receiver and the LSP/stability provider) puts in the same amount of bitcoin, and 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 built on LDK Node. Prior versions were compatible with LND and CLN. These legacy implementations can be found in /legacy.

Links with examples:

• Basic example: Twitter thread
• In-depth discussion: Delving Bitcoin
• Podcast discussion: Stephan Livera Podcast — Episode 591
• Project website: StableChannels.com

Run the User Desktop Wallet

You can check out the latest builds for macOS, Windows, or Linux here - https://github.com/toneloc/stable-channels/releases

Run from Source

To run the app from this source, please install Rust on your OS.

Using a fresh Ubuntu or on Windows? You may need to install OpenSSL libraries or Perl.

Linux - sudo apt-get install -y pkg-config libssl-dev and curl.

Windows - winget install StrawberryPerl.StrawberryPerl. Windows also requires a few other things as well.

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.

Logs and key files can be found in these directories:

• Linux - ~/.local/share/StableChannels
• Mac - ~/Library/Application\ Support/StableChannels
• Windows - %APPDATA%\StableChannels _{^{*actual directory might differ depending on user's system}}

Configuration

The application works out of the box with smart defaults, but supports customization via environment variables or a .env file:

Quick Setup (Works Out of the Box)

# Just run - no configuration needed!
cargo run --bin stable-channels user

Custom Configuration (Optional)

# Copy configuration template
cp env.example .env

# Edit with your values
nano .env / vi .env

# Run the application
cargo run --bin stable-channels user

Environment Variables (Optional - has smart defaults)

• STABLE_CHANNELS_LSP_PUBKEY - LSP node public key (default: included)
• STABLE_CHANNELS_LSP_ADDRESS - LSP node address (default: 100.25.168.115:9737)
• STABLE_CHANNELS_NETWORK - Bitcoin network (bitcoin/signet)
• STABLE_CHANNELS_USER_NODE_ALIAS - User node alias (user)
• STABLE_CHANNELS_USER_PORT - User node port (9736)
• STABLE_CHANNELS_LSP_NODE_ALIAS - LSP node alias (lsp)
• STABLE_CHANNELS_LSP_PORT - LSP node port (9737)
• STABLE_CHANNELS_CHAIN_SOURCE_URL - Bitcoin API endpoint (https://blockstream.info/api)
• STABLE_CHANNELS_EXPECTED_USD - Expected USD amount (100.0)

Running Different Components

# User interface
cargo run --bin stable-channels user

# LSP backend server
cargo run --bin lsp_backend

# LSP dashboard
cargo run --bin lsp_frontend

More instructions on running the LSP backend are forthcoming.

Stable Channels Process

Every 30 seconds, the price of bitcoin:

• (a) Goes up:

  • User/Stable Receiver loses bitcoin.
    • Less bitcoin is needed to maintain the dollar value.
    • The User/Stable Receiver pays the LSP/Stable Provider.

• (b) Goes down:

  • User/Stable Receiver gains bitcoin.
    • More bitcoin is needed to maintain the dollar value.
    • The LSP/Stable Provider pays the User/Stable Receiver.

• (c) Stays the same:

  • No action required.

Note: Stable Channels are currently non-routing channels. Work is ongoing to add routing and payment capabilities.

Payout Examples (entry = $100,000/BTC)

Each side puts in 1 BTC at $100,000.

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%

Acknowledgements

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.