1) Minimum rates - you can't set this with FRR. You claim people are happy to take what they can, and to some extent that's true, but part of this is because they CAN'T choose the minimum they'll take with FRR... This option alone would have a HUGE effect on rates (...)
I like that idea.
Arguably a good improvement with absolutely no downside for anyone.
Super-easy to implement, just add a new box "minimum acceptable rate" or something similar, can even be checked client-side with simple javascript code. Allow "0" for the lenders which will take anything, according to mjr. But
provide no default value and require the box to be filled, so that whatever they enter is a conscious decision.
Only re-offer their BTC or USD if the FRR > their minimum rate. Sit on the sidelines if not, and maybe check once an hour if the FRR raised to an acceptable level and re-offer then.
Exactly, if you have a default rate, you just move the wall to whatever that default rate is. None of those people would get filled, as anyone who wanted to get filled would just jump in front of them...very similar to how the FRR is currently acting. It doesn't matter what rate you choose, if it is not the ACTUAL rate (the lowest rate that someone is willing to offer a swap) it will just sit untaken. It seems that there are two different discussions happening. One the one side, force users to have to set a rate that they want, in order to hopefully induce them into picking higher rates, and raising the rates overall. On the other side, when discussing the FRR, it is simply a calculation. If you wanted to, you could simply average the swaps taken over the last hour and then set your own offers at this price. It happens to be built into our system, but it is still just people choosing a number. What I mean by this, is that if people wanted to, they could replicate the FRR without it being built into our system. I think it just comes down to what is easiest for people to do.
So, if the discussion is about forcing people to try to choose higher rates, we have no interest in that. We have no horse in the race, and the rates are whatever they should be as dictated by the swap market. There is no "right" rate. The BTC market has again illustrated this. If the rate needs to be higher, in order to attract more offers, it will rise. If it doesn't...it won't.
If people want to discuss a tool like the FRR, and how it could be improved (it is basically just an index), then that is a different discussion. What I am trying to do is separate out the "we want higher rates" discussion, from the "the FRR is not a good tool" discussion, because again, we do not want to set rates, because the market handles that on its own.
Again, YOU, the person offering swaps, get to set the rate that YOU would like to receive. It is up to other people if they are willing to accept less. Whoever is willing to accept the least wins. So, any discussion that centers around "how can we make the rate higher (or lower)?" is basically pointless. There is a method for doing this now. If the rate is too low, either set an offer with a higher rate, or just pull your offers until the rates climb to the level you find acceptable. As an example, if every person who offers swaps decided that they would not accept any offers beneath 1% a day, that would be the rate...so why doesn't that happen? Because many people are willing to accept FAR less than that, in order to get something. They undercut those people who have such high expectations, and those people end up with funds that are not being used at all. I just get frustrated because it seems to me that some people (not all) are using the FRR as a scapegoat for the underlying market forces that they don't like. As I said, a person who offers a swap gets to pick whatever rate they want, but it is up to other people to offer a better rate. The complaint boils down to "other people are willing to accept less than I am!", and I just don't have any answer for people who think this way. If some people want to discuss how to create a BETTER index, as a value for autolenders, that is useful and constructive. We are more than happy to discuss and consider any such suggestions.