Quote from: Sukrim on November 13, 2014, 12:30:48 PM

What sucks more is the artificial ceiling at 1%/day. Bitcoin can be (as shown AGAIN today!) be FAR more volatile than this. Either remove FRR from auto-taking offers (so FRR needs to be taken manually, an easy fix to the whole "my fixed rate does not get taken" issue) or remove the 1% ceiling on auto-taking offers, so the FRR can rise faster.

OK, if we did that "so the FRR can rise faster" it would accomplish the goal of helping the FRR to rise faster, that is not our goal. The issue is not "how can we make people offering swaps more money", that is up to your strategy. What we want to do, is make a more responsive instrument to try and figure out an average rate at which people would be ok with providing a swap. I built a bot that can easily keep my funds constantly active, and it is not very hard to do. The main issue is finding out what rate you need in order to find it worthwhile. If your funds are returned, you should put them out again for the best offer. The issue is that those people who are closing their swaps in order to get a better rate are the exception, and most traders simply take whatever the lowest rate is. Traders can pick from two pools of funds (fixed rate offers) and (fixed rate offers + FRR), so if the traders didn't want to take funds at the FRR, they can. So far most people want access to the largest pool of funds, and they accept funds from the larger pool.

Secondly, the FRR is not supposed to match the returns or volatility of bitcoin. The 1% cap, which is an insanely high rate to pay, first off, has not even been close to being reached. So I don't see, how it is an artificial ceiling, when no one has come close to it. The fact of the matter is that there will probably always be someone willing to undercut your offer, and take .07, and that is what we are typically seeing. If you want to match the rate of bitcoin, you should trade bitcoin. The FRR was conceived originally to allow persons offering swaps to participate somewhat in rising markets, but never to make it equivalent to bitcoin. The main issue we have right now, is that it doesn't respond fast enough, which is why we are testing changes to the formula.

I constantly get the feeling, when discussing the FRR, that the people who hate it, hate it because they think they can charge traders more for swaps and they won't notice, that they are "leaving money on the table". This isn't the case, the swap market is competing amongst itself to provide swaps for whatever amount of volume we have. The people who pick the smallest number win. So, I don't think you will see, even if we remove the FRR a huge increase in the rates. The rates will stay as low as the person who wants it the most is willing to go.

Anyway, I think that for the amount of time people are spending writing on this forum about this issue, if they put that amount of time into writing a bot to manage their swaps, they would be much happier. You can probably get a basic bot working in like 2 hours, I would estimate, if you have experience with the API. You could then monitor the FRR, and make sure your offer was always in front of it.