If users were to go to Bitfinex to lend assets themselves, they would have to place funds manually and comply with the transaction mechanism each time. In other words, every loan needs to be re-ordered.
At the same time, borrowers are mostly looking to satisfy short-term demand. When borrowers repay loans, your orders need to be re-matched again. You are not capitalizing on your idle funds if order placements aren't immediate.
Smart lending automates the lending process and detects in real-time when funds have returned. The bot optimizes collecting interests and compounds them onto your next order placement.