Which HQP Filter are you using? [2023]

No, the digital noise floor is far far below analog noise floor. Analog noise floor is in any case limited by physics (thermal noise). Modern issue is gain mismatch, where you end up having back and forth attenuation / gain with additional analog stages, which causes increased distortion and dynamic range degradation. Cutting some of that out helps improving output fidelity.

Output levels between -10 dB and -20 dB usually give best performance figures from DACs. So if you can get gain matching around -20 dB that is a very good result.

Yes, it is good idea to have safety margin. In best case the maximum would be limited by actual DAC output plus amplifier gain. But there are other ways.

But preferably the “DAC volume” is not digital volume inside the DAC…

Good starting point figure is that it would need over 96 dB of attenuation, so the amount of dynamic range 16-bit has to begin with.

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