So, if I add all that and make it compete with you for being active, you will see higher or lower rates? In other words, the more effort you put in (writing a bot), the better your returns. Those who "set and forget", won't make as much, but more importantly, they will not compete with you who do want to actively manage (via bot) your positions.
and of course they compete... they compete by setting an unnatural, unmanaged wall above which no other loans will go out, thereby creating a high limit I can't go above.