Today I saw the funding rate spike to an outrageous level again. In the group, a bunch of people were shouting, “take the opposite side and pick up the money.” My first reaction wasn’t excitement—it was more like I wanted to hide a bit... To put it plainly: extreme funding rates mean extreme emotions. On paper, you’re eating the funding rate, but behind the scenes, you might be getting slapped by volatility. What’s even more annoying is that some contract platforms/pools have all kinds of permissions and “upgrade” loopholes—if something really goes wrong, you can’t even make it clear who you’re actually betting against.

As for me, I’m kind of leaning toward being cautious: if I do take the opposite side, I only use a small position, set a stop-loss, and treat it like buying insurance. More often, I just turn off the leverage and go to sleep, then deal with it tomorrow. Lately, people have been comparing RWA, whatever US Treasury yield, and on-chain returns all the time—so I have even more to complain about: one looks “stable,” and the other looks like “handing out money,” but when it truly turns extreme, whether it’s stable or not depends entirely on whether you can withstand that sudden burst of chaos. In any case, I’d rather earn a little less than become fuel for the funding rate.