Reduce max trade amount to 0.5 BTC

[MwithM]

BTC price has reached 100.000 USD lately. When last reduction was accepted, price was around 69.000 USD, but it was commented there that another reduction would be needed soon.

I propose to reduce the max trade amount parameter from current 1 BTC to 0.5 BTC. There aren't many trades for amounts over 0.1 or 0.2 BTC, but I think it's still necessary to have limits at DAO level.

There are other parameters that need to be reduced, like min security deposits, max buy amounts for unsigned accounts or locked bond requirements, but I think this is a good place to start. I'll be adding other proposals during this week.

[solomon1923]

It would be good to have a discussion about how Bisq parameters will work when the trade protocol options for traders are:

1. Legacy Multi-Sig
2. MuSig
3. Bisq Easy
4. BSQ Swaps

Assuming the first iteration this year, when MuSig is introduced will be:

1. Legacy Multi-Sig (Alt-coins)
2. MuSig (Fiat trades generally above 0.01 BTC)
3. Bisq Easy (Fiat trades generally below 0.01 BTC)
4. BSQ Swaps

If the following is correct then I think the limits for Bisq Multi-Sig and BSQ Swaps would be too low at 0.5 BTC. Even 1 BTC seems a little low. Both are also fairly established protocols and there has never been an issue recently with BSQ Swaps and other than the DAO imposed refund agent refund limits altcoin trading for most part works effectively.

I appreciate the limits could be raised if there is consensus but thought it would be good to have a discussion about what the upper trade limits should be for the above should be assuming a bitcoin price of above $100,000.

I would suggest:

1. Legacy Multi-Sig (2 BTC)
2. MuSig (0.5 BTC)
3. Bisq Easy (0.01 BTC)
4. BSQ Swaps (2 BTC)

I think one of the benefits of a p2p platform for altcoin is trading a fixed amount of bitcoin for a given price without having to deal with slippage. This benefit is reduced with smaller trade limits. It makes taking advantage of arbitrage opportunities more risky and less profitable.

[HenrikJannsen]

I think MuSig will require a beta test phase with rather low limits to reduce risks from bugs.

I don't understand your reasoning about keeling high limits for altcoin and BSQ.
I doubt there are many large amount BSQ trades.

Even there have not been bugs or exploits that can never be excluded and with higher limits the potential damage is also higher as there are better chances to detect and halt trading when trade volume is distributed over smaller amount trades.

And for power traders to make multiple offers should not be a big issue. 50k USD is quite a large amount and maybe still too high...

[solomon1923]

Pulling from the trade data, since the start of 2024 the average value of an XMR trade is 0.131 BTC per trade. In this time approximately 600 XMR trades were above 0.5 BTC in size.

For BSQ the average trade size is a lots less at 0.015 BTC and only one trade has been above 0.5 BTC in the last 12 months.

With this in mind I think 0.5 BTC is fine for BSQ but low for altcoin trades.

[HenrikJannsen]

I don't think the extra complexity in explaining and handling altcoins is justified, as well as the added risk should be avoided.