[bisq-network/roles] BTC donation address owner (#80)

burningman2 notifications at github.com
Tue Jan 28 00:29:15 UTC 2020


Update regarding refund agent accounting:

The refund agent has paid 9.639 BTC so far for reimbursing traders (cyle 8: 2.3925, cycle 9: 4.09617, pending for cycle 10: 3.15033). Due to lack of accounting and increased BSQ volatility the trades with the refund agent have been too much and the requested BSQ way too less.
He traded 195912.19	BSQ for 14.15 BTC, so that is 4,511 BTC too much and 122011.19 BSQ is missing from reimbursement requests. He made compensation requests for 73901 BSQ so far (should have been reimbursement requests). 

It is tricky to calculate the missing BSQ for covering the 9.639 BTC as market price is unknow for future trades (with current price it would be roughly about 80 000 BSQ). 
I think it might be better to use the 122011.19 BSQ and then make a break with trades from the burningman to the refund agent and BSQ reimbursement until the 4,511 BTC are used up for refunds (probably will take about 1 cycle if number of cases stay similar as past months). 

Please note that this situation has no advantage for the refund agent as he did not had the intention to sell his own BSQ which he used for the trades with the burningman to cover up the missing BSQ from reimbursement requests at such bad market prices as they are currently. So the damage from that mess is on the refund agents side (beside that the BSQ market would have got some more support if more BSQ would have been bought from other traders). 
Once the 4,511 BTC are used up and trading with the burningman and reimbursement starts again, we need to improve the process to avoid such mess and risks. 

**Here is my suggestion how to do it:**
Refund agent needs to refund trader with xxx BTC. He use his private BTC to pre-finance it.
At the burningmans weekly trade event he makes an BSQ offer to cover his outstanding BTC with the BSQ market price. He will sell his own BSQ as he has not got the BSQ reimbursement at that moment (he pre-finance it). He get xxx BTC for selling yyy BSQ. So his BTC pre-financing is recovered now. The BSQ amount which he pre-financed now he will add to the list for the reimbursement later. At the end of the cycle he will make a reimbursement request with the sum of all his pre-financed BSQ and after he gets that issued he has recovered also his outstanding BSQ.

The BSQ price change over the cycle is now less relevant as the trade activity is done relatively shortly after the refund (week). He still takes liquidity risk in case not enough BSQ are open for trading from the burningman. In that case he would try to recover his outstanding BTC at the follow up week. 

For doing those 2 times pre-financing and taking the risk he should charge some amount of BSQ as well as for the work as refund agent (mediation). This should be made as compensation request, the BSQ amount he pre-financed should be done as reimbursement request.  

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