Not sure about Bitstamp, when I read that story, I didn't even think about that, because it has been so long since we really did much over there. I will get back to you, but I don't believe that it has any effect on us.
Good to hear, but can some sort of official confirmation there be prioritised?
All I've seen is some deliberately-vague Reddit posts from Raphael (from some time ago) talking about how you used to have a reasonable quantity of funds on Bitstamp to implement mirroring their orderbook onto 'Finex (effectively arbitrage between the two to add some depth to the books here), and that they were intending to "reduce" the amount of that they did.
That was offered as an explanation for the price on Stamp and Finex starting to diverge and when someone asked for details of how that reduction was going to happen they were turned down with words to the effect of "I can't tell you that". I'd been assuming that, with that link severed, you would have no need to keep funds with a 3rd party and would have withdrawn them out since then, but it would be calming to hear it officially and definitively.
As for FRR...
Then the liquidity provider can plan for this by simply putting out an offer at a much higher rate. Once the lower rate offers exit en mass (why they currently have offers that aren't filled, and are content to leave those offers on the books...its not my theory, I don't know) you are now at the top of the book. Congrats, you are now receiving the returns that you think are appropriate.
Became tired of the effort of manually placing offers for the current returns, placed high offers to wait for better rates... so I guess I'll be able to report back
soon eventually, as to whether this strategy pays off.