Recently, the funding rates have been a bit outrageous again. I usually don’t rush to “take the other side.” In the past, I’d get itchy when I saw extreme values, thinking I could grab free money, but I’d often get slapped awake by volatility: the rate is a reward, but it also locks you into the fluctuations.

Now I pay more attention to the liquidity levels of the lending pools: who’s adding collateral, who’s reducing their positions, and how close the liquidation line is. If big players are still topping up and leverage is piling up, I’d rather stay on the sidelines, earning less is fine; only when I see deleveraging happening, and the pools start cooling down, will I consider small positions taking the opposite side, taking it slow.

By the way, recently, modularization and DeFi layer discussions are flying high, developers are passionate, users are confused… I’m just watching where on-chain funds are flowing. No matter how big the narrative gets, someone has to be able to withstand the volatility.