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.
(...)
I thank you for your long response, but I believe there's a misconception about what you think I tried to say? I just wanted to express that I like HowardF's idea how to
easily make the current FRR a little bit better without changing much.
There's no default rate in my post, so I'm unsure what you're trying to explain to me here. Nor is it about getting the rates higher.
Just a way to improve the current system with a slight, very easy to implement change that
benefits everyone (or, if you disagree with that, has at least
no downsides).
Howard had a suggestion for a minimum rate, I saw that you didn't. I was trying to basically respond to both. Yes, I personally always was a fan of allowing people to set a delta on the FRR, so you could say "Put out an offer at the FRR+.1%" meaning that you would get a better return than the FRR, IF the FRR gets taken. If you wanted to accept less, but have higher priority, you could put a negative value.
One quick note, whenever I refer to a minimum rate of 0, it is more like a limit in calculus than a number that I think would actually be used. People who will take anything, won't actually take NOTHING, but they would take anything as it approaches the limit.