Here's an idea for replacing the FRR while still catering to lazy lenders.

When choosing variable rate autolending, lenders will have two parameters to set:

• Allow no more than $x of competing offers to be priced lower than or equal to mine
• Do not reduce my offer below y%

Do not provide default values.

The system should place the lenders offer as high as it can without violating the specified parameters. If two competing offers would end up in a race to the bottom (for example, x=0, y=0), just match them with the highest available swap demands.

This would break up the massive FRR wall while still allowing autolenders to benefit from increases in swap demand.

An alternative that might be simpler to implement:

• Place new swap offers at x%
• Reduce swap offer rate by y% for each hour(or minute?) that it remains unfilled
• Do not reduce swap offer rate below z%

This one also has the advantage that default values can be provided, since it will still create a range of offers even if everyone uses the same parameters.