[bisq-network/bisq] Bisq-2 UX challenges (Discussion #5959)

[chimp1984]

> Could I know which one or two protocols Bisq2 will be initially using?

I think a reputation based protocol (similar like users trade in the keybase channel, security is based on some sort of reputation) is likely the easiest to implement I plan to start with that first as it also does not require wallet integration.
The next might be a Liquid Atomic swap. I think that would be also quite easy and would give a great user experience for very fast swaps (Liquid has 1 min. blocks).
The next priorities from my side would be the current Bisq Multisig based but that will require also the DAO integration so that will come with higher effort.
Atomic cross chain swap XMR-BTC is also a top prio but might be one of the more challenging and will require to user to run some extra software (likely: XMR full node, BTC full node, farcaster daemon).
 
> Key user needs that may help you choose: Fast transactions, cheap fees, privacy, trust and the accommodation of users who have no Bitcoin to trade.

Yes I think with those 2 mentioned we cover quite some space which is currently not served in Bisq. Current Bisq will probably also operate just in parallel.

> Which assets combine with each protocol?

The reputation based is totally open to assets. People can trade anything against anything also fiat-fiat. Though we should make clear a boundary that we do not want to support a OpenBazaar like marketplace as this comes with very different challenges, even there is quite some overlap. 

The Liquid swap will support all Liquid assets, main focus will be on BTC-L and USDT. I guess they started with NFTs as well and game tokens. I am not following (and not interested) in those, but as long they can be swapped as an asset on Liquid there should be no limitation. Contrary to Bisq there will not be a curated list of assets users can trade but will be open to anything users want to trade as long its technically supported. 

> Could you please provide a list of settlement options, matching them to each protocol if applicable.

For the reputation based protocol there will be also no limit. We will likely integrate the major settlement methods which we support in Bisq (SEPA, ZELLE, Revolut,...) but contrary to current Bisq there also will not be a curated list of settlement methods, but users can add their own in some flexible format (this will lack some validation features and counterparties need to pay more attention to potentially insecure methods).

For Liquid swaps both sides are settled onchain on Liquid.  


A main challenge for that reputation based protocol will be how to make it sufficiently secure to keep scammers out. It might be that initially only DAO approved sellers can trade there. E.g. to limit it for users who want to buy their first Bitcoin from trusted Bisq contributors/market makers who have set up a BSQ bond and got support by voting.  

> Please provide a list of the specific options for each protocol if applicable.

There will be some options which will be available for most protocols and mostly integrated into the relevant UI area.
- Range for amount by adding a min. amount value (integrated into the amount input UI)
- Percentage based price following market rate
- Trigger price to deactivate offer (as in current Bisq)

Reputation based protocol:
- Max. duration for the settlement
- Reputation info (BSQ bond based, social media account link,...)
- Break down trade amount in sequence of smaller trades (e.g. newbie wants to get 0.1 BTC but 5000 USD is too much of a risk to send to a market maker, so they decide to split it into 5x 1000 USD payments and only after the buyer has received the BTC they move on to the next trade - buyer has to send fiat first, so they take the higher risk).

Liquid swaps:
I guess there are no options.

The fee payment is an open question and no clear idea yet how we deal with it. We do not want to add friction for fee payment or degrade privacy. For reputation based protocol it could work via the market makers. E.g. they have to burn BSQ to get the "license" to trade there. They earn by market price premiums so they can calculate those costs into the price and the newbie trader pays the trade fee indirectly via the price.
For Liquid we could add some bonded role in the DAO who receives the fees on Liquid and sells it to BTC and then to BSQ and burn the BSQ. Is a bit of a hack and not great, but might be a solution. Maybe we launch BSQ on Liquid some day then it would become easier. For the start we can just omit the fees as well.

> List of advanced options for each protocol

The advanced options are those which are not required to be changed by the user and can be left to default values like security deposit in Bisq. On the other hand selecting a payment method can only be pre-selected in case the user has only one payment method for that currency but of there are multiple the user need to decide and we have to make the choice more prominent in the UI.

> Which protocol requires fee payment and security deposit?

Regarding fees I wrote above already. It largely an open question.
Security deposit is so far only required for the Bisq Multisig protocol.

> Protocols which require the user to reserve funding, if any.

I think thats as well only required for the Bisq Multisig protocol.
Atomic swaps require to have funds in the wallet so that when a taker takes the offer it can be executed, but it will behave similar like BSQ swaps where the funds are not "reserved" but only checked the wallet balance if it can serve a potential trade. This allows multiple offers which would in sum exceed the wallet balance. To avoid problems here we update the visibility of offers each time the wallet balance changes, so if there is not enough balance for a certain offer this offer will get hidden from the network until the wallet has sufficient funds again (it will get automatically republished then).

Hope that clarified things.
There are still many open areas where we have to work out the solutions step by step... 




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