[bisq-network/proposals] Decentralized pricenode data providers and create a Bisq weighted price index (#163)
notifications at github.com
Fri Jan 3 08:54:35 UTC 2020
> _This is a Bisq Network proposal. Please familiarize yourself with the [submission and review process](https://docs.bisq.network/proposals.html)._
This proposal picks up on discussion from back in 2017 about [the current flaw with Bisq pricenodes](https://github.com/bisq-network/bisq/issues/1074) where @ManfredKarrer summarized the issue quite well:
> We are very dependent on BitcoinAverage as the only Fiat price provider. If there are issues (as we just faced) all percentage based prices cannot be taken. We need secondary price sources and either fall back to that in case we have issues with BitcoinAverage or mix it.
Recently 2 of our pricenode operators encountered a critical issue where they were unable to receive BitcoinAverage market data, due to BitcoinAverage having multiple issues with their website, changing their payment plan structure, and their payment provider not being able to process Bitcoin payments (all at the same time).
I propose that we add https://www.coinapi.io/ as a 2nd data provider, but of course this introduces a new issue, again as @ManfredKarrer already summarized it:
> Thought there is some complexity as all price relays need to have the same source as otherwise take offer attempts can fail if the price what the maker and the taker sees is above a small tolerance window. E.g. If one peer gets the price from a relay which gets it from BitcoinAverage and the other peer is connected to a relay which is connected to coinmarketcap the price will be likely different and exceeds the tolerance window.
> So it need some creative solution how to deal with those issues.
I propose we create a Bisq weighted price index, that weighs each data provider equally, so that in the event one of the data providers is unavailable, the pricenodes can still serve price data to Bisq nodes. The technical details can be discussed here, but I think this general idea works well for many other projects.
Currently each pricenode must pay BitcoinAverage $60/month for "startup" plan, and around $40/month for hosting costs, for a total of $100/month. By adding coinapi, we would need to double the pricenode budget to around $200/month each. Considering that BitcoinAverage is a Trusted Third Party and a huge CPOF for Bisq, the weighted price index will add a lot of value to Bisq.
You are receiving this because you are subscribed to this thread.
Reply to this email directly or view it on GitHub:
-------------- next part --------------
An HTML attachment was scrubbed...
More information about the bisq-github