[bisq-network/projects] Add Monero to fiat trading pairs using BTC as the security deposit (multi-sig) (#50)

m52go notifications at github.com
Thu Apr 8 00:29:52 CEST 2021


I think this is an interesting idea. Below are my perspectives after spending some time trying to better understand XMR markets on Bisq.

### XMR-BTC

Bisq is already capable of doing high XMR trading volumes. Back in summer 2019 it wasn't uncommon to see 80, 100, or even 200 BTC trading days. Nowadays it's rare to see a 50 BTC trading day, but it does happen. It's just not clear what drives these spikes. 

I spent time last year trying to determine reasons, but best I could find was an XMR Telegram group where a Bisq enthusiast would post about Bisq every Monday. Not sure this is actually what drove volume, but the time periods of this activity with the spikes in trading volume do coincide.

Another thought (and one I think makes more sense) is that the "new" trade protocol (the one in use now, introduced in v1.2 with mediation and delayed payout transactions) killed the feasibility of active XMR trading on Bisq. If you look back at XMR volume spikes, you'll notice that they tend to be for 1 or 2 BTC trades, and [many of them were instant](https://github.com/bisq-network/roles/issues/38#issuecomment-599561611) (1-hour time window) trades. This indicates that traders wanted to trade big amounts quickly. If there were issues, arbitrators (old trade protocol) would typically solve within 24 hours, and traders depended on that. With the current trade protocol, an altcoin dispute which cannot be solved by mediation necessarily takes 10+ days to resolve. And that's just to engage an arbitrator -- actually getting funds back takes much longer -- and even after all that, funds are in BSQ, not BTC or XMR. 

Imagine the possibility of having 50,000 - 100,000 USD of trading capital tied up for that long because of a stupid trading mistake the other guy made...

### XMR-fiat

Feedback I've received in the past indicates that any exchange mechanism touching BTC is a problem...so frankly I'm surprised at the positive response you got for this idea from the XMR community. I get the impression a lot of XMR people like the idea of Bisq but have been turned away because they perceive it to be anti-XMR, so any pro-XMR news is cheered no matter what (e.g., the "the Mom test"). For example, I remember the XMR autoconfim feature getting lots of positive reactions but ultimately it doesn't seem like it's used much.

Anyway -- as I see it, this idea doesn't seem to solve the core problem XMR people tend to have with Bisq. If it's not much effort to implement, I wouldn't oppose giving it a shot, but if it does take a lot of effort, I would be in favor of validating the idea more rigorously somehow first.

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