Once the funding rate reaches those extreme values, I actually don’t want to “prove how brave I am.” More often, I’m thinking: is this wave driven by emotion squeezing everything, or is it structurally about to break down? Put simply, it’s fine to want to take the other side of the trade, but only if the order book depth is still there and the trading activity hasn’t fallen off in a way that leaves a gap. Otherwise, you think you’re catching a dip—but you’re really just catching flying knives.

I usually start by placing orders across a few “levels everyone can see, but still painful enough.” The size is small—like casting a net. At the same time, I watch the on-chain timing of large transfers to exchanges. Just now, I saw a transfer of 1,8xx ETH split into two parts going into a CEX, and then afterward the perpetual open interest was rising alongside it… In situations like this, I’d rather dodge the volatility and let it finish its performance first.

Recently, the whole “restake again, shared security” approach has also been criticized as a “copycat,” and I can understand why. When the rewards are layered over too many levels, it becomes unclear who ultimately bears the risk. When the fees are at extreme levels and you still go chasing that kind of “stacked yield,” my mindset really can’t handle it. Anyway, I’d rather earn a little less and wait for the panic index to catch its breath before I act.