Dynamic Depth Strategy

The deeper the book depth, the better the lending rate to be offered, but also the higher the risk of the offer not being taken.

The goal of this strategy is to let the bot modify dynamically the 'Min depth' setting to reach a given 'Use Rate' target

This will create a feedback loop between Use Rate and Min Depth, to discover the best balance between high Min Depth and high Use Rate.

For example, we can target a 98% use rate (closest possible to 100%). Each 'Cycle duration' hours, the bot will process this period's Use Rate. Then, it will adjust the Min Depth by a certain percentage to the upper or lower side, depending on whether the 'Use Rate Target' is reached or not.

Warning 1: we recommend to disable the Adaptive min rate strategy when using the Dynamic Depth Strategy, because it may lower the Use Rate when temporarily waiting for better rates, and thus hinder the Dynamic Depth Strategy.

Warning 2: This strategy may not be optimal for currencies with low liquidity on the lending market.

There are 3 settings for this strategy:

  • Use Rate Target [in %]: The targeted Use Rate in %. Default value is 98%.
  • Target Adjustment [in %]: Min Depth will be raised or lowered of this adjustment percentage. For example if Min Depth is 20 BTC and Adjustment is 10%, then the next Min Depth can become 18BTC or 22BTC. Default value is 10%
  • Target Cycle Duration [in hours]: Defines how often the bot will make adjustment. Default value is 8 hours
  • Last time: For information, we are also displaying the time of the last update, just to let you follow up the ongoing feedback loop.

Example in words

  • Use Rate target 98
  • Dynamic Adjustment 10
  • Dynamic Depth Cycle Duration 48

This example means that:

  • Each cycle of 48 hours, the bot will calculate the last cycle's Use Rate.
  • If the use rate is lower than the target rate, the bot will adjust min depth by increasing it 10%.
  • If the use rate is higher than the target rate, the bot will adjust min depth by decreasing it 10%.
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