What's up with the USD loan matching?
I've been monitoring the usd loan matching for a few hours.
There's a 40k @ 0.14, 30 day loan offer, and plenty around that rate also for 30days. (specifically 30 days, not '2-30days' mixed offers)
But somehow, hundreds of thousands USD worth of 30 day loan offers @0.75% (per day!) are matched instead of those at lower rates!
Are you sure of that?
I'm regularly lending out my funds (though the US dollar mostly), and I don't remember I saw it the way you describe it. Could you post a snapshot? Most likely, you are confusing another thing. That is, when you lend out for 30 days, you are kind of stuck, and you can't demand the borrower to return the funds before the end of the whole term, while the borrower can return the money any time he sees appropriate. In this way, if you expect the loans to surge further, you'd be better off if you lend the money at a lower interest but for a shorter term. There can also be a case when what you see is not what happens in reality. Which is to say, all loan offers are taken up to higher rates but you only see the highest rates shown, and then the offer book gets instantly refilled
I've been lending out for years, I'd have to have been hallucinating to be this wrong.
Sometimes auto-renew loans are being ignored, according to some people I spoke to; this might be related.
Support responded that a fix was put in place.
My educated guess would be that the loan matching engine has a bug which causes it to enter a faulty state, and they solved it either by restarting or effectively fixing the bug.
My bet would be on the first, or maybe patching and code review proces is lightning fast
Strictly speaking, I didn't notice anything strange but maybe it is particularly because I didn't find it strange at all. You seem to implicitly assume that loan offers should be matched as they are in regular trading orderbooks but should they? For example, if we place a sell order which is at a higher price than the lowest Ask price in the book, we expect our order to be executed against the orders with lowest prices first (which is kind of logical). But is it or should it be the same for loans?