What are the future use cases for Fedimint?
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There are many speculative use cases for Fedimints that will likely be explored in the next few years.
It is worth remembering that Fedimint is an open protocol and as such no permission is required to build and deploy new modules or business models as you see fit.
Inclusion of use cases in this list, doesn't indicate any specific interest or promotion by the contributors to fedimint.
Is it possible to perform “DeFi” on Fedimints?
Yes, “FeDeFi” is possible.
As the federation is not a blockchain, it is not limited in what can be run on it. In theory, arbitrary code such as P2P exchange, lending, and automated market making could be run within a federation or by a user of federation using their mobile app or computer - all off main chain and off lightning network. In addition, in combination with the lightning network, inter-federation applications such as arbitrage and liquidity mirroring could be performed by users who are connected to multiple federations.
One can think of Fedimint as "trusted smart contracting". You replace mining with trust in a federation.
Can stablecoins be used on fedmints?
In theory, stablecoins on Fedimint would be possible. Liquid Tether (L-BTC) or potentially (once mature) Lightning Lab’s Taro would be examples of systems that could be implemented. If included, FeDeFi functionality such as P2P exchange could be used to enable the exchange between Bitcoin and stablecoins within the federation while intra exchange arbitrage over lightning could further enhance this capability.
Are there further use cases?
There are an almost unlimited number of ways you could use a Federated mint, given the modular nature of the design, however, some use cases will be better suited than others.
We anticipate the community will build and deploy a number of interesting use cases, some examples which have been discussed so far include:
- Community banking,
- Remittance systems,
- Family custody applications,
- Inheritance protocols, and
- Distributed computing.