Kleros reposted this
Most people don’t realize that trustless, costless stablecoin escrows — the crypto equivalent of chargebacks — already exist. They’re called optimistic workflows. With them, you don’t need to sacrifice decentralization or pay 5–10% to a trusted custodian just to replicate the protections of PayPal, Visa, or Mastercard. And true to the spirit of Web3, most of them are free to use. How it works: In an optimistic workflow, transactions are innocent until proven guilty. Funds are locked in a smart contract and released automatically after a predefined dispute window — unless someone raises a challenge. No dispute? No fees. Dispute? Then a decentralized arbitrator like UMA or Kleros steps in — using Schelling point game theory to align jurors around the honest outcome. Example: Let’s say Alice hires Bob to design a website. She wants to pay in Circle's USDC, but only after the work is done. Here’s how an optimistic escrow might work: 1. Alice deposits USDC into an escrow smart contract. 2. The funds are locked for 7 days (the “dispute window”). 3. If no dispute is raised, funds are released to Bob automatically — no fees charged (besides gas). 4. If a dispute is raised: - The disputing party sends a refundable deposit. - If the other party responds with a matching deposit, the case goes to decentralized arbitration. - The jury rules; the winner gets their deposit back. The loser’s deposit pays the jurors. - If the other party doesn’t respond in time (e.g. 3 days), the first party wins optimistically. Optimistic workflows are already powering: 🟣 Kleros Escrow and SafeSnap 🟢 UMA oSnap 🧾 Escrowly.eth.limo 🔒 Lockler.eth.limo 🌉 Across Protocol, Optimism, Arbitrum, and more (in different forms) So before you start building, buying or paying for any escrow solution for your #stablecoin project/functionalities, check out these projects first as they are practically free to use and can be integrated into any workflow. 🫡 #web3 #stablecoin #stablecoins #defi #dao #smartcontract #escrow #optimistic #ethereum #USDC