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:
Example in words
This example means that: