Bootstrap USD/BTC liquidity

[ripcurlx]

Learning Goal/Objective

If we provide enough liquidity for the USD/BTC order book, we bootstrap the market for organic growth.

Hypothesis

If the experiment is successful, we predict to the total volume to grow by x (everyone placed its own bet) percent.

Experiment Design

Every participant on the experiment tries to keep two offers (1 buy, 1 sell with low distance from market price) open all the time to provide liquidity.

Resource Estimation and Probability

Low personal effort and High probability that it will succeed.

Results

- What happened?
- Did we succeed or fail?
- What data did we collect?
- Anything unexpected?
- How close have we been to our prediction?
- Why did we see the result that we did?

Learnings

-What did we learn by running this experiment?

Action Items

- Another experiment for this goal?
- How do we progress from here on?

[flix1]

Before we can bootstrap USD liquidity we need to review payment methods and research which USD payment methods can combine security, fraud prevention requirements (no chargebacks) with speed and with a large user base.

[flix1]

Localbitcoins has the following payment methods for USD:
-Cash by Mail
-OKPay ----> Bisq
-Perfect Money ---->Bisq
-Payeer
-Transfers with specific bank ---->Bisq
-Paxum
-International Wire (SWIFT)
-WebMoney
-Cash Deposit ---->Bisq
-Western Union ---->Bisq
-Neteller
-Other online payment: Revolut
-National bank transfer: United States ---->Bisq
-Payoneer

[flix1]

Market making milestones:

Phase 1: Minimal order book (1 offer on each side, spread < 10%, total offered > 0.1 BTC)
Phase 2: Retail order book (10 offers on each side, spread < 3%, total offered > 5 BTC)
Phase 3: Trading order book (20 offers on each side, spread < 1%, total offered > 10 BTC)
Phase 4: Wholesale order book (50 offers per side, spread < 0.5%, total offered > 50 BTC)
Phase 5: Institutional order book (100 offers per side, spread < 0.25%, total offered > 100 BTC)

[flix1]

Step 1 - we need to find a volunteer with a US bank account to experiment with National bank transfer: United States on the USD/BTC order book and discover if this could be used to replicate the success with SEPA for EUR/BTC.

[ripcurlx]

Was superseded by #36.