[bisq-network/proposals] Reduce maximum trade size for unsigned payment accounts (#322)

m52go notifications at github.com
Tue Mar 16 09:52:01 CET 2021


> _This is a Bisq Network proposal. Please familiarize yourself with the [submission and review process](https://bisq.wiki/Proposals)._

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Maximum trade size for unsigned payment accounts should be addressed quickly.

[The last proposal on this](https://github.com/bisq-network/proposals/issues/295) was open since January but bogged down and stalled by a mix of concerns. Here I want to solely address maximum trade size for unsigned accounts. 

It is currently possible to trade >500 USD without signing with risky payment accounts in active markets. A year or so ago this would have been unthinkable...signing was implemented to prevent trades beyond 80 USD. This amount has now ballooned over 7x. I don't think it's an overstatement to call it a considerable risk to the project.

**I think this unsigned maximum trade limit should be reduced to 0.0025 BTC.** The current range for valid signing trades is [0.0025 - 0.01](https://bisq.wiki/Account_limits#Account_signing), so essentially I'm proposing to make the range fixed to this lower amount (unless there is a technical/other reason for this amount to be a range).

At current rates, 0.0025 BTC is still well over 100 USD. The BTC/USD rate could crash by 20,000 and 0.0025 BTC would still be close 100 USD, which has been the target for this unsigned maximum.

#### Hard Fork

[As noted here](https://github.com/bisq-network/proposals/issues/295#issuecomment-761791986), this change would require a hard fork. I think the gain in network security is worth it. As noted above, the change still allows for relatively generous trade sizes, and would still be reasonable in case of a BTC/USD crash.

#### Mining Fees

There was a point [here](https://github.com/bisq-network/proposals/issues/295#issuecomment-761256997) about this change causing mining fee proportion of total trade size to increase, making trades look unattractive. I agree this is a downside, but it's more of a downside of Bisq's trade protocol that will need to be addressed in other ways.

#### Workarounds

Another way of achieving this without explicitly changing the limit is putting guidance in the software to encourage sellers to make smaller offers (i.e., make <0.01 offers even smaller in order to avoid 400 EUR payments from unsigned accounts, thus reducing the number of <0.01 offers on the network for unsigned buyers to take). This would avoid a hard fork, but might not be very effective unless sellers had a [way of limiting their offer to being takeable by unsigned accounts only](https://github.com/bisq-network/proposals/issues/133). 

It would also hurt liquidity for users with signed payment accounts in the <0.01 range, which is not a great idea.

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