Valet

About

Valet has normal on-chain usage features and self-custodial Lightning features, but it is unique for the implementation of Hosted/Fiat channels Lightning technology that it also houses. Hosted channel is a Lightning implementation that uses the Host/Client relationship to enable an easy on-ramp to Lightning usage. The Host runs a Lightning node, and a Client (in this case, a Valet user) can open a custodial channel to the Host and can start receiving Sats without the need to commit any channel-opening liquidity. Just like a normal self-custodial Lightning channel, a Hosted channel is completely anonymous since the preimage generation and Tor masking still happen on the client side. In Valet, the Hoste channels technology was further tweaked to another implementation called "Fiat channels". The only difference between Hosted channels and Fiat channels is that the latter enables the creation of a 'Stable synthetic Fiat asset" when Sats are received by the client. So in this case, when a client opens a Fiat channel to a Host, they can immediately start receiving Sats, but whenever they receive Sats, the fiat value of those Sats is automatically locked in as a stable Fiat IOU balance on their dashboard. So at any point in time, the client can spend/send out Sats worth the locked-in Fiat balance on their account. This technology is particularly beneficial to merchants who want to accept Bitcoin for payments but are worried about Bitcoin's price fluctuation. With this implementation, these merchants can accept Bitcoin and retain their value of their Bitcoins as at the point they received it, without needing to always convert them to Fiat, hence possibly incurring fees and frictions. With Fiat Channels, clients (merchants or anyone who desires to use the service) can constantly receive and send payments across the Lightning network without leaving the network, converting to any Fiat, or using any token. At all times, Sats are exchanged. This ultimately helps to drive the use of Bitcoin as a medium of exchange. So with Valet, users can - Hold Bitcoin in self-custody through the on-chain balance - Use Lightning Network in self-custody mode by opening normal Lightning channels - Use an anonymous, yet custodial and cryptographically auditable Lightning Network. - Accept Bitcoin payments without the fear of price fluctuation, opening businesses to Bitcoin Lightning's uncensorable global reach as a payment network without compromising their identity, as well as balancing their business's financial operation. It is important to note that at any point in time, a client can easily sweep their Fiat channel or Hosted channel balances into their normal self-custodial Lightning channel without any fees or permission from the Host. Valet is a lightweight application that can run on any Android device, even as old as Android version 8.