People can either take a fixed rate or flexible rate. FRR historically has spiked due to manipulation and wiped out a lot of positions, hence the setting to allow traders to either consider FRR and take the risk of a spike or not.
FRR has spiked? lol. It went from 0.02 to 0.1 Sry, but that is the same crap that was said last time when I posted about this issue. How it could potentially be clever to reserve at 0.7 (who the fuck believes this?) because FRR would run out... Of course it didn't, there is still plenty and it's still at 0.1 when the spikes regularly go to 0.7 and beyond. When was the last time FRR was over 0.2? Ages ago and exactly because shit like this is allowed. If these guys want to take out six figure offers force them to take from FRR or calculate FRR dynamically but fix it once the offer is put on the book. What's happening is seriously ridiculous and absolutely in line with all the bullshit that has happened on the swap market before.
Instead of having a liquid market that reacts dynamically to increasing supply and demand (low demand it's at 0.02-0.05, high demand it goes to maybe 0.3) we always get shit like this just because fucking BFX is too stupid to remove the fucking FRR. I'm so fed up with this shit.
I dont have a problem with FRR. Swaps on FRR are still only people that dont want to manually put in their loan offers. FRR doesnt push the price forward or backwards. Its the peoples money on there and their money would be elsewhere in the orderbook without FRR. So taking it out only would lead to offers done manually. It wouldnt help you to make great swap deals i think.
But what do you write about taking offers behind FRR? Is that happening or not? It shouldnt be possible if FRR is there. So were offers taken that were behind FRR?
I noticed that somethings not correct with FRR too. I mean it sometimes shows up on the left side of orderbook with values that dont match or dont make sense to show up there. I wonder if FRR is calculated in a buggy way. But i surely would like to have given some swaps at 0.6% per day for 30 days... oO
Of course it happens as I have shown with the screenshot. It's happening right now and nobody cares. You can also look it up on bfxdata. Seemingly because suddenly people (god knows why, it never happened before 1.5 months ago) order large amounts of money (6 figures+ multiple times) and don't include "variable" rate" to be taken which cleans the order book behind the FRR but leaves it intact. Tunneling like that should not be possible, it messes up the order book, ruins any predictability and further kills liquidity.