...~25% YEARLY is considered LOW WTF!?!
Until the market crashes is a way that Bitfinex didn't fathom or that the swap engine cannot keep up with and you lose half your principle. Everyone seems to forget that bit.
That is the point of a free market. You get to decide at what rate you will take on a certain level of risk, which you also have to quantify. This is exactly why a fund doesn't work, but a market does. I think that our track record at protecting swap providers continues to grow stronger, and as we are growing, it makes sense that people are starting to trust us with more of their money. I think that USD swaps are a pretty great value, even at their current rates, but that is just my opinion.
Yes, but a free market does not have de facto, system forced price point does it? Something you have steadfastly refused to
fully address. This 'market' is controlled in the same manner that Fed exerts control; by adjusting rate of the single largest pool of money available. The Fed has the Discount Rate and Bitfinex has the FRR.
I'm not going to debate this anymore. You
originally ask for ideas on how to improve the FRR. The general conclusion was to best way to fix it was to remove it. It was not the answer Bitfinex wanted. If I look at the situation from your point of view I can see the somewhat perverse logic in it. The FRR serves
Bitfinex well and hopefully soothes some guilt you have about the treatment of the leveraged traders.
So be it, the FRR is not going to go away, but, I would ask for some intellectual honesty on Bitfinex's part and quit trying to portray the swap market as even remotely 'free'.
I'll address the rest of what you said in a later post. Can we please agree though, because this is basic, that you cannot "improve" something, by making it not exist anymore?