Post
Topic
Board Exchanges
Re: [OFFICIAL]Bitfinex.com first Bitcoin P2P lending platform for leverage trading
by
0x3d
on 16/10/2014, 00:26:41 UTC
I still have to agree with qwerty and his lengthy post: mjr's FRR +/- some percent would only convert the current flat line (swap rate over time) into a sine-wave slightly wobbling around the still flat FRR-"magnet". It wouldn't eliminate the occasional see-saw spike during times of high demand either. My proposal which my PR-dept. decided to call "active-to-inactive swap-ratio adjusted common bucket fund" should average rallies out smoothly because, well, no walls at all plus neither longs nor lenders get left behind during rallies (meaning no FRR-wall-frustration induced re-balancing of wallets out of the blue leading to WTF-charts), only shorts and borrowers (= the longs, yes) need to suffer if swap demand grows above swap offer but this then is the auto-regulating loop (an effective market) we seem to be looking for so badly, is it not?

With FRR +/- n the other spike we have today (the FRR on the orderbook) would also only be smoothed into a most certainly left-pulling bell shape because people still want their USD to be lent out as soon/much/often/long as possible underbidding each other in the process. It doesn't really matter if the FRR is a spike on a single point on a line or if it's a "hill" spread out over a few promille around such a point, it's still just a wall with the exact same surface area and that's why your proposal doesn't change a thing in the end. It's not as if we couldn't do exactly what you're proposing for like forever by adjusting one's offer below the FRR manually. Arguably, your proposal seems to include automation but why would that make any difference? Going below is going below.

Having 2 or more different FRR-formulas to choose from (one using a 7-day average, another using 30 days or whatever) will, over time, only flip-flop swaps. One week one group's swaps would be the cheapest and earn the most, next week it could be the other one. Boils down to "choose your moving average and if your's on top, you win". Sure one could flip-flop the flip-flopping market but with min. and max. durations and the now talked about penalties for early repayments this doesn't make much sense either.

I for one would be happy with less insane but more constant and predictable gains. Trading = badass looping pilot, swap lending = smoothly gliding autopilot, mkay? So is that just me or do you guys seriously need two intertwined cocaine'esque markets on a single platform?