As the creator of an unpublished bot very similar to HowardF's, this exactly. All the market participants act independently, currently FRR acts like a "blob". The only time it will increase is during liquidity spikes, which should be minimized/eliminated. That is, the only time FRR increases is when the FRR liquidity is already consumed. By that time, there's no liquidity to tilt the average up. Interest rates could be >400% annualized, but with no volume it doesn't move the average from the millions already lent out at low rates.