Research DAIHard integration into burner-wallet

[TimDaub]

Scope

• @troggy posted https://daihardhome.wpcomstaging.com/
• It'd be amazing to have such an exchange built into the burner-wallet

What we’ve built is a gateway to crypto completely devoid of centralized components–rendering entry and exit to crypto unkillable, flexible, borderless, and private. Centralized exchanges, and the control they impose, can now be bypassed by anyone with Dai and a web3 wallet.

Deliverables

• TBD
• Talk to @TimDaub or @troggy for details?

Roles

bounty gardener: @TimDaub / 10% bounty worker: name / 75% bounty reviewer: name / 15%

[troggy]

DAIHard looks like an awesome contract.

However, I see burner as an ephemeral wallet with short time to live. It meant to be quick and frictionless for onboarding and use. With this in mind, DAIHard is not a good choice:

• not going to work for onramping. You need to hold assets for stake, you need ETH for gas etc. A lot of friction
• (temporary) low liquidity, you always need counterparty (comparing to Bity)
• no API for order matching, settlement is manual → a lot of new async UI will be needed

[coinop-logan]

Edited, and deleted later comments, for conciseness.

@troggy I tend to avoid calling DAIHard an "onramp" for exactly that reason. An onramp should work for users with no crypto, and DAIHard doesn't meet this criteria. The more immediate utility of DAIHard is as an off-ramp, and that's what I imagine might be very cool to integrate in some way with a burner wallet.

The user might see an additional button "exchange for cash". Under the hood this would create a sell order on DAIHard. The user could choose what we might call an "expedite fee"; the higher this is, the faster it will be filled. This could feel a bit like ordering an Uber, but instead of getting a ride you get delivered cash. But there are still be two missing pieces to this vision.

• The user must manage the DH trade. This is definitely not a one-step process, and crucially must include the final burn/release decision--otherwise the game theory breaks down. My first inclination is not to directly build the UI for this into the burner wallet, but rather link to the existing DAIHard trade interface after the deposit/creation call is mined. Unfortunately at the moment, the DAIHard trade management page doesn't really work on mobile, so we'd need to address that on our side. This is on the road map but not as immediate as you might suspect.

• A second set of users must be watching the set of open offers, waiting to fill them. This is another way of stating the lack of liquidity. If these users are here, then when you create an order with a good expedite fee, it will be filled immediately and professionally--perhaps even in minutes in some cases. But without this group, creating an order is a shout into a void.

Our main focus these days is solving that second point.