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Privacy Dex: Concept for a Decentralized Platform where Users can Sell Coinjoined Coins

Privacy Dex: Concept for a Decentralized Platform where Users can Sell Coinjoined Coins

Bitcoin Reddit

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Today I had an interesting conversation in a Telegram group chat about the lightning network. We were discussing possible new lightning apps and I had the idea to use the lightning network to create a decentralized exchange where users could offer to sell their coinjoined coins via the lightning network. Other users could come to the exchange to purchase freshly coinjoined coins over lightning, creating a circular economy for on-demand private transactions. I'm probably not a good enough coder to make this happen, but here's part of the conversation, slightly modified:

Me: hey I've got an awesome new idea for a lightning app

Me: start doing coinjoins and then let people pay using lightning to spend money from your freshly coinjoined coins

Me: you could even charge people a 1k sat fee for spending from your coinjoin stash

Otherguy1: you can already use bitflash.club to buy other people's utxos via lightning

Me: do they give people the option to buy coinjoined utxos?

Otherguy1: well, not coinjoin, but coins gotten from other random people who used the service in the inverse direction

Otherguy1: which is probably even better

Me: you would essentially be selling coinjoined utxos for for a premium — people would probably pay good money for that

Otherguy1: but isn't bitflash already better?

Otherguy1: we can call the utxos they sell "coinswaps"

Me: I'm not sure, why would coinswaps be better than coinjoins?

Otherguy1: they don't look like coinjoins

Me: prima facie I'd rather have coinjoins because I'm more familiar with them

Me: selling people coinswaps would be like trying to create a market for a new product versus selling into an existing market

Otherguy1: I wouldn't want to do coinjoins and pay 0.3% to wasabi

Otherguy1: that's worse than elisabeth warren's millionaire tax

Me: do them on joinmarket and you can get maker fees and pay nothing

Me: actually it occurs to me that if there was a wallet client that allowed any user to sell coinjoined utxos over lightning, that might be even better

Me: I personally have lots of coinjoined utxos, but I have no need for them. I'd like a way to sell them, and I know there's demand for them

Otherguy2: I see

Otherguy1: hahaha, you're running a joinmarket yield generator, I see

Otherguy1: I'm also doing that, and also don't have a use for my utxos, and I also thought about selling them

Otherguy1: but it's hard because they have a fixed size

Otherguy1: anyway, I guess you could do a submarine swap market for full utxos

Me: if there was a market that anyone could contribute to, people could pick the size they want

Me: and some people might notice a gap in the market and do a coinjoin of that size to fill that gap

Me: people could even charge a higher price for coinjoins that are rarely offered

Me: and then competition could come in and lower the prices for coinjoined utxos

I hope someone takes this idea and runs with it. I'm no good at app development, but I think this idea is worthwhile. What do yall think?

submitted by /u/nowitsalllgone
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