Increase altcoin trade size limits to 5 BTC

[pazza83]

The below is something I have thought about a while ago when considering ways to increase trade volume. Seeing how large trades have been reimbursed in BSQ without incident I thought it would be a good time to have a discussion around trade size limits for altcoins.

Background

All altcoin trades on Bisq currently have a 2 BTC limit.

Running the numbers on the most popular altcoin in Bisq by volume, XMR, there were 4,399 trades in 2021 for a total of 1,862 BTC.

625 of the XMR trades were for 2 BTC. This means 14.4% of XMR trades were for the maximum amount.

This data was pulled from the Bisq app > Markets > Trades.

Problem

My hypothesis is that increasing altcoin trade limits have a positive correlation to trade volume.

Therefore, I hypothesize that by limiting altcoin trades to 2 BTC Bisq is suppressing altcoin trading volume.

Outcome

Increase trade volume on altcoin markets

Solution

Increase altcoin trade limits to 5 BTC.

I have no reason for choosing 5 other than if implemented it can be used to reflect on the hypothesis that increasing limits increases trade volume.

Risks

As I understand it altcoin limits are put in place to protect the DAO should any adverse security incidences occur. By its nature larger trade volume equals more risk. I would like to see Bisq trade volume increase over time, so I accept that this will bring with it some risks.

There is also some risk posed at arbitration, user error etc. I think some of the risk posed by arbitration is partially mitigated in the following by @refund-agent2 only refunding traders up to 0.5 BTC, any refunds above this are paid out in BSQ and have to be voted on by the DAO.

Risk Mitigation

Maybe signing for altcoins?

Maybe once a user has completed a 2 BTC trade their account is signed and then 30 days later they can complete trades for up to 5 BTC?

Also hopefully there would be additional revenue generated to consider other ways risks could be mitigated.

[chimp1984]

I see the risks higher as the benefits from it. 2 BTC is already a lot of money.

[MwithM]

In the past I wanted to reduce the limit, now I don't see much difference on what the limit is, because a trader can open as much orders as they need. MIning fees, when trading 2BTC, are not a considerable cost.
This 2BTC limit increases with bitcoin value as numbers go up.

[pazza83]

Closing as was rejected