[bisq-network/proposals] Allow 1sat/vByte fee for withdrawals (#343)

VlVEK notifications at github.com
Fri Dec 3 14:34:16 CET 2021


this thread is interesting and critical at the same time if we are expecting  the price of bitcoin to only go up

I appreciate these efforts being done in the past to arrive at a consensus 
> Many of us have spent a lot of time to optimize and minimize the mining fees (and overall trading fees) where possible:
> 
> * switched from earn.com to mempool.space fee estimation
> * ongoing efforts to reduce trading protocol from 3 on-chain to 1 on-chain transactions
> * year-long efforts, backed by generous donors, to fund custom dev work to fully enable segwit
> * tweaking of fee estimation at different stages of the trade protocol, to ensure trade is reliable, but to not overpay
> * and countless more

The ways highlighted by @cd2357 are indeed useful to reduce the overall transaction fees
> My personal opinion: before asking for a code change, it might be worth it to first look for easier / more profitable / less disruptive ways to make up for the 1 sat/vB difference in withdrawal mining fees:
> 
> * for all your trades, pay the trading fees in BSQ instead of BTC (about 50% savings)
> * become a market maker, instead of a taker (those who create offers pay much smaller trading fees)
> * try to create trade offers when the mempool is free (lower estimated mining fees for both trade participants)
> * instead of many trades with small amounts, go for fewer trades with higher amounts

Here's a calculation for 0.00100000 BTC trade (average expected trade in BTC/INR) using the above ways suggested
1. deposit transaction from external wallet of maker at 1 sat/byte = 0.00000145 BTC
2. trade fees for maker 0.03 BSQ = 0.00000100 BTC / trade fee in BTC = 0.00005000 BTC
3. mining fees for maker = 0.00002000 (appx at the minimum of 10 sat/vbyte)
4. deposit transaction from external wallet of taker at 1 sat/byte = 0.00000145 BTC
5. trade fees for taker 0.03 BSQ = 0.00000100 BTC / trade fee in BTC = 0.00005000 BTC
6. mining fees for taker = 0.00007000 (appx at the minimum of 10 sat/vbyte)
7. withdrawal transaction for maker = 0.00000220 (at 2 sat/vbyte)
7. withdrawal transaction for maker = 0.00000220 (at 2 sat/vbyte)

summary with trade fees in BSQ:
total maker fees = 0.00002465 (2.5% of trade amount)
total taker fees = 0.00007465 (7.5% of trade amount)
total fees = 0.00009930 (10% of trade amount of 0.001 BTC)

summary with trade fees in BTC
total maker fees = 0.00007365 (7.5% of trade amount)
total taker fees = 0.00012365 (12.5% of trade amount)
total fees = 0.00019730 (20% of trade amount of 0.001 BTC)

the elephant here is not the withdrawal fees at 2 sat/vbyte but the minimum mining fees at 10 sat/vbyte - let's find out ways to address this elephant

suggested ways:
1. i understand there are ongoing efforts to reduce trading protocol from 3 on-chain to 1 on-chain transactions
2. when the mempool is below 10 sat/vbyte can we reduce the minimum trade fee to 2 sat/vbyte the way it is for withdrawals?
3. can we have an option for fast & slow trades where the maker creates a slower trade with 1X minimum mempool fees or a faster trade with 2X of minimum mempool fees as highlighted by @wiz?
4. there is a discussion on using RBF & CPFP [bisq-network/bisq/discussions/5890] however i'm personally not in favour of using RBF as it is prone to misuse & unnecessary disputes.

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