Using merit for L-BTC fee payment distribution in Bisq 2

[chimp1984]

This is a Bisq Network proposal. Please familiarize yourself with the submission and review process.

There are open questions how fee payment can be done in Bisq 2. Here is one idea for trades on Liquid:

A DAO contributor (who earned BSQ by compensation requests) creates signed fee share requests and publish those to the P2P network. The fee share request contains:

• Signature
• IssuanceTxId (from there the EC pubKey can be derived, needed to verify the signature)
• The L-BTC address

Signing uses the private EC key of the issuance tx and the L-BTC address is the message to get signed.

Any DAO node can verify that the signature is correct. This fee share request will be used in the Bisq 2 network (if DAO is integrated the verification can be done there by any node, otherwise we need a trust based data transfer solution). When traders trade LBTC-USDT (or other assets) they pay a fee to one of the fee share request members according to a weighted probabilistic distribution. If traders trade assets not containing LBTC we can consider to add another major asset address as well (e.g. USDT). I guess confidential tx can be used so the fee amount is private. The fee receiver is still not private as it is linked to the issuance requesters identity.

[clearwater-trust]

Please define L-BTC

I guess confidential tx can be used so the fee amount is private.

What is a confidential tx?

Thank you.

[chimp1984]

L-BTC is Bitcoin on Liquid https://docs.blockstream.com/liquid/technical_overview.html

[chimp1984]

Closing in favor of https://github.com/bisq-network/proposals/issues/359