...~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 currently can see an offer, and a bid. The FRR is not remotely close to the bid. It is in no way standing in front of the 61 offers that are currently in front of it, AND not being taken.
"The general conclusion was to best way to fix it was to remove it."
You are the only one who has concluded this. I, personally, think that statement makes no sense. You could say "The way to improve THE SWAP MARKET is to get rid of the FRR.", but you cannot say "The way to improve the FRR is to remove it." That is not an improvement to the FRR, the FRR no longer exists, therefore it cannot be improved.
Again, you are arguing that to improve the swap market, we should follow your suggestion. While appreciated, we never asked that question. We asked how to improve the FRR, and forgive me if I look for answers to that question.