So, starting from today (in a few hours), the way variable rate is calculated will be different:
It will be a pondered average of all opened loans (VIR or not). If fixed rate, then this rate is taken into account). If VIR, then the rate used for the calculation will be an average of the VIR of the last 60 days.
This is a first step. The second will be to allow you to set a max daily rate for your orders.
Thanks, this is indeed an important first step.
After thinking this issue over, the root of the problem is that under some circumstances, the
market balance is affected. That is what allows some people to game the system.
When the market is functioning properly, there are two forces balancing each other: (1) you can offer and (2) you can choose not to accept an offer.
The force (2) is affected, and this allowed these excessive rates to become
effectiveSo what we need to solve the probleme at the root are means to reinforce (2)
Thus my proposal:
Give the user the power to set a global limit. This limit is then picked individually up by each order, in the same way the lending period is picked up. The limit sets the point where a user prefers treatment as if there was "no reserve", instead of taking higher offers. And, alongside with that there should be a toggle to allow or disallow using VIR at all.
(If it is too complicated technically to store a limit this way with each order, then at least have one global setting affecting orders the moment they are exectuted)
If you do it this way, we give the market forces a chance to kick in.