[bisq-network/proposals] Increase BSQ trading fee to get to 0.4% (#103)
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Sat Jul 20 16:51:19 UTC 2019
@huey735 The 1 BSQ = 1 USD assumption is based on the current BSQ market price of 1 USD more or less.
The BSQ fee has to be adjusted according the market price of BSQ as well as the market price of BTC. If the BTC price is unchanged and the price of BSQ goes up to 2 USD then we would have to lower fee by half. If the BSQ/BTC ratio doesn't change there is no need to change the BSQ fee, but the BSQ/BTC ratio hasn't been very stable so I suspect we will have to keep changing the fee as the market moves.
Since we're still using fiat, and specifically USD, as the unit of account it's a bit harder to think about these matters. If we were to use BTC as the unit of account it would be easier to conceptually internalize that the BSQ fee per BTC traded needs to change as the BSQ/BTC rate moves.
Regarding the manipulation of markets, it would be worth pushing the BSQ price up to pay fewer BSQ for a trade. If the manipulation pushed the price to 10% of the market value of BSQ the fee would be 10x as many BSQ, not a great outcome. It's not obvious that this would be a problem from the point of view on the DAO though. The price manipulation would have to pay fees for the trades to register and those fees would likely be higher than the fees saved. I think taking an average over the last X BTC worth of BSQ traded would limit the value of manipulation if X is sufficiently large.
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