shocknet_justin on Nostr: A merchant is selling an actual good, inventory they are stuck with if they reneg on ...

A merchant is selling an actual good, inventory they are stuck with if they reneg on a sale. A swap is arbitrage where the liquidity provider gets a free option. A merchant doesn't have a free option.

A multi-currency swap is additional to the merchants/buyer agreed exchange rate. A multi-currency swap into a physical good exacerbates the dilemma because its no longer bitcoin<>dollars ... its shitcoin<>bitcoin<>dollars, and why the shitcoin is always worth less with a smaller network.