When funding rates hit an extreme, I start to feel a bit reluctant to be a hero... The order book looks lively, but the on-chain depth is like fish under ice, moving slowly but honestly: you can tell who is truly adding to their position and who is holding on tight. To put it simply, extreme rates are more like an emotional tax; if you really want to take the other side, you have to wait until it starts to "dull," otherwise you think you're eating meat, but you're actually catching flying knives.

Anyway, I usually follow two paths: either take a small position and trade against the trend with a tight stop-loss; or simply avoid the volatility and wait until the rates return to a normal range. Recently, new L1/L2s have started offering incentives to boost TVL, and it's normal for old users to complain about "mining, selling," but actually, during these times, the market is more easily influenced by short-term money, so don’t treat the rates as faith... I just watch slowly and hold back from acting too much.