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but I think the real saving is that Peach gets a single juicy fee UTXO instead of having to consolidate separate outputs from every trade

Pretty cool

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Am I correct in conclusion that the use case here is just mixing outputs for increased privacy? And not saving on fees due to batching?

Cause I can't see how mining-fee-savings-due-to-batching could overcome the 2% service fee.

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I don’t think privacy is improved here. It’s all about fees afaik

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