We are still doing backtesting on a proposed change to the calculation of the FRR.
Welcome Bitfinex team, Do something about it !
Nothing is perfect especially on FRR.
Even bitcoin price rising about 19% from 320 to 380.
and FRR surprisingly and unbelievably declining about 10% from 0.0782 to 0.0705.
The reason is very simple.
Under existing system, If the FRR millions dollars giant wall being formed ( no matter whatever reasons causes it, and admittedly it is very easier to form ), then after being formed, it became a monster itself and is very very difficult to be conquered ,then,
The urgent lenders unavoidably trying to lend their funds out under FRR and this causes FRR even lower and lower, and the FRR giant wall become higher and higher ,and,
The more and more smart borrowers taking their loans leisurely under FRR and this again causes FRR even lower and lower and FRR giant wall higher and higher.
So, this is the scenarios we face today of vicious circle of FRR giant wall.
Sure you can say this is all about market demand/supply, but don't forget, the existing FRR system is established by you, and now not only it is obvious not flexible enough to correspond to market movement, but also already totally losing its functionality it originally designed to be.
So, pls do something about it !
