Suggestion of a way to prevent rugging of coins by adding stop loss feature.

[GraphicShivam]

Hey @maebeam @lazynina @tijno, this is @GraphicShivam from Bitclout. Can we have a limit order feature to Bitclout frontend? Like when buying some creator's coin we can set some orders on the coin price as that can help investors highly in their investments. Say something like stop-loss, which might probably help investors against huge losses.

Also, can there be an option like not selling all your coin at once. With the combination of these two updates, we can prevent the rugging of creator coins.

I hope I am making some sense!

[tijno]

Thanks for the suggestion @GraphicShivam

I think Limit orders is a feature for another project build ontop of the bitclout protocol - rather than bitclout itself.

Maybe something for pulse.

Or someone building a proper creator coin trading desk solution.

Im also not sure how traditional limit orders would work in a situation where price is determined by the bonding curve.

Lastly - the prevention of rugging - not sure i understand how limit orders or stop losses prevent that.

In my experience stop losses can trigger bigger sell offs than normally would have happened.

Maybe you can share some more details about how you would see this work.

[GraphicShivam]

Like if we have some kind of a restriction on selling all of the own creator coins at once.

To prevent rugging:

Restrictions like only 20% or 40% or maybe 50% of your own creator coin can be sold at once, then repeat the process if you want to sell more. I mean if we just remove the Max. option from selling panel and fix it to say 50%.

And for the investors, there will be an option to add a stop-loss order to their investments, like if this particular creator sells 50% of his or her coins, then my order will be executed and half of my investments will be saved. The % can vary depending on the investor, how much loss he/she can bear.

Thanks for your time, Shivam

[tijno]

This has been discussed in previous CIPs - i dont have them at hand.

It wont stop rugging. If a user wants to run they can easily get around these rules.

Stop loss I dont think is possible technically until there is a reliable way for transactions to be signed on the users behalf. I think derived keys will implement this.

But again - i dont think this is for the protocol to implement - best for specialist trading tools like pulse to implement this.

[ItsAditya-xyz]

won't serve the purpose to stop rug pulling. I can use the API endpoints to rug or just use other node to bypass this limit.

[tijno]

@GraphicShivam i think anything else should really be discussed in a CIP rather then an issue. So probably best to close this one and move any remaining points to appropriate CIPs Discussion https://github.com/bitclout/cips

[GraphicShivam]

Ok, Thanks for the clarification!