Small $$ deposits to detect trust issues

Circles general
1

Here is a proposal to strengthen the Circles trust network and have an easy way to detect Circles trust connections that abuse the trust.

Every new Circles user could “back” there Circles by a small amount of $$ (xDAI). The easiest way to do this is to register there personal Tokens on a Uniswap like exchange (e.g. https://honeyswap.org/ on xDAI) and “list” there personal token against xDAI. E.g. 10 CRC and 10 xDAI would set the initial price to 1:1. Now anyone can trade THOSE Circles against xDAI and the other way around.

Concrete, you can take those personal CRC and exchange them against xDAI. No matter how much CRC you take you will never be able to buy more than the initially supplied $10. For that reason this will not play a big role in “backing the value” of personal CRC. However - it can still serve as an important signal.

Bot operator will try to drain those xDAI. As soon as they will find a trust path to the user they will exchange their worthless CRC into the CRC of the user and use those to drain the xDAI.

Just to demonstrate I created here liquidity of my personal Circles against xDAI.
https://info.honeyswap.org/account/0x7B2e78D4dFaABA045A167a70dA285E30E8FcA196?chainId=100#/pair/0xd19db06fb89f151bcfbcf6fc71ffd03edaa27198

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Sounds interesting. So I can see that I can verify (also to others) my direct trusts with this easily. However, I am then “responsible” for all indirect trusts - if there is just one bot in this “transitive hull” my xDai is gone, right? That’s quite harsh, this is so strict that it might hinder adoption then. It’s not just about bots, it’s also about someone wanting to leave Circles, not care about the direct contact and doing this.

So it’s an option for sure, but does not sound like everybody will do this, unless forced by the system (making it way more credible then for sure).

What I don’t yet understand: wouldn’t a bot wait for some (even quite a long) time before doing this? So it can only do this once presumably, so it would try to maximize the profit?

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