How about a system in which users can, if they wish, place an amount of bitcoin into a special account. New users who do not yet have any bitcoin can automatically borrow the bitcoin from that special account on their first trades. When the deal is complete, the system returns the borrowed money to that account plus a small interest of say 2%. Would it be feasible to code something like this into bitsq?
I will reply to your post here as well.
It is probably feasible, but we have to consider the benefits of such complications. Security deposits are coded in by choice with a purpose to make it costly for people not following the protocol. It is always simpler to remove the security deposit in the first place then to code in some special use cases. This will be left for the users to figure out how they want to make sure that they will not be cheated in the trade by adding customizable security deposits. I honestly don’t see any benefits for loans when the customizable security deposits get implemented, people can then just trade with people they want to loan the money to in the first place without a security deposit (or one that is so small and useless that someone will be willing to just send you the sum).