On April 14th of this year, the Breez development team announced the release of Stable Balance, a new feature in the SDK (Developer Toolkit). This allows any application to use Bitcoin (BTC) to send and receive payments while providing dollar balances to users.
The problem you are trying to solve is BTC price volatility This makes it difficult for some users to use it as everyday money. Breez’s statement emphasizes that users who receive Bitcoin today could see their balance reduced by 30% tomorrow without doing anything. For example, considering BTC’s current price of $74,000 and its all-time high of $126,000 recorded last October, Bitcoin’s market value has fallen by 41%.
Stable Balance targets this issue, and once developers integrate Stable Balance into their apps, users can activate it and maintain balances in dollars while payments continue to flow on Bitcoin rails.
How does Breez SDK work?
As the Breez team explained, when a user activates Stable Balance in an app that integrates Stable Balance and receives Bitcoin, the SDK Automatically converts received Satoshis (minimum unit of BTC) to dollars. Once you submit your payment, it will be converted to Sats on the spot. Users always see their dollar balance, which is not linked to the price of Bitcoin.
Dollar balances are backed by USDB, a stablecoin issued by Brale on Spark, a second layer (L2) network designed for faster and cheaper payments than the base layer.
The conversion is performed through Flashnet, a decentralized exchange (DEX) that also runs on Spark. Breez SDK We manage that entire process internallyDevelopers and users no longer need to interact directly with these systems.
USDB-backed dollar balances mean: the user trusts the publisherwhich introduces third-party dependencies.
Passive returns with Breez SDK
Breez, on the other hand, emphasizes the additional benefit of stable balance. Users holding USDB will generate returns (yield) Get paid daily in BTC without any additional steps.
According to Spark’s official documentation, USDB is the native Spark dollarized stablecoin. Offers 3.5% to 6% APY (Annual Percentage Yield) paid in BTC Every day at midnight (00:00 UTC). Performance depends on the daily trading volume on the network.
- 3.5% if the volume is low.
- Up to 6% for daily trading volume over $25,000.
- You must maintain a minimum balance of 10 USDB to receive benefits.
Finally, according to the statement, this feature will be available to all developers using the Breez SDK starting April 14th. The company’s reference application, called Glow, is already active as a first example implementation.
