[bisq-network/bisq] Investigations for a new trade protocol (#5430)

MwithM notifications at github.com
Fri Apr 23 10:07:11 CEST 2021


> If collateral is used it should be in BTC or the base currency of the DEX but not a DEX token.

Stablecoins can be used, like RSK's [Dollar On Chain](https://moneyonchain.com/) (DOC) which is backed only by rBTC, or even USDT. That would eliminate the future trading issue and reduce the need of collateral amounts significantly.

I think that the priorities would be:
1. Single transaction trading protocol.
2. Liquid. I believe that it's similar to Bitcoin protocol so the effort to use liquid for Bisq trading would not be huge. It would reduce mining fees, reduce waiting times and improve privacy. I find losing censorship-resistance a minor problem since main Bitcoin layer should still be used.
3. LN: It should be on the first place, but has many technical issues to be solved, like lack of multisig and liquidity.
4. RSK: It could be my first option if it wasn't such a drastic change, and not only because of lower mining fees. The options that smart contracts give to Bisq is huge and **can't be ignored**, like using stablecoins for collateral, use of AMM for alts and even the possibility of getting completely rid of burningman by sending delayed payouts to a contract which buys BSQ from AMM that will be burned automatically. What sovryn has done at RSK is very nice: it allows AMM, leveraged rBTC-stablecoins trading and loans.

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