[bisq-network/proposals] Proposal to increase trade deposit to 30% (#233)

RefundAgent notifications at github.com
Thu Jun 25 19:20:44 UTC 2020


Virtually all cases that go to the Refund Agent are because one of the traders abandons the trade. The number of abandoned trades is higher when the market is volatile and most of the cases can be suspected to be future trades. That is, the price moved against the buyer who simply leaves. There are also cases where the seller don't release the btc, probably because he/she does not care enough about the security deposit.

Increasing the security deposit will give both buyer and seller more skin in the game, they will do much more to overcome any difficulty in paying, they will have incentives to speed up the trade and they will be less inclined to "forget" the trade. They will be more secure that the other trader will honour the contract and do so quickly.

If a 30% security deposit is a suitable amount is unclear but it should be tried to see how traders react. Better would be a security deposit which reflects the price of the option that an offer in reality is. I. e. the past volatility could be used to estimate the correct price of the option. The DAO must realise that an offer is an option and trying to force traders to fulfill their obligations using other means (reputation, blacklisting by "trusted" team members, ...) will be a very cludgy method indeed, probably with plenty of not intended consequences.  

As it is now the Refund Agent follows the mediators suggestion since in essentially all cases one trader does not respond. Even if both traders do respond there is never anything to change. There are no known cases where the mediators have made any mistake.

Bisq should not need any mediation at all. Bisq is a platform where traders meet and make their trade, secured by the security deposit. Mediation and refunding should only be used in those rare cases where there is a bug in Bisq. 

As it is now I doubt that the DAO will find anyone to replace the Refund Agent. The Refund Agent is a single point of failure which goes against the philosophy of Bisq.


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