When the funding rate hits an extreme, I start to get itchy. Honestly, it's that gambler mentality of "Everyone's crowding on one side, should I go to the other side to pick up the leak"… Knowing full well I might get pressed to the ground and rubbed, I still want to try. In the past, I would force myself to be the counterparty, but when I encountered one-sided pumps/dumps, no matter how attractive the funding rate was, I couldn't withstand it, and my cat-like position would immediately explode.

Now I’m a bit smarter: first avoid the volatility, wait until the emotions settle down before acting. If I really want to be the counterparty, I only take a small bite, pretend to be dead if I lose, run if I win, and don’t get into a battle. Recently, there’s been talk of major chains upgrading/maintaining, and everyone in the group is guessing whether the ecosystem will migrate. I don’t bet on migration or not; I just watch if the funding rate drives people crazy… If it drives me crazy, I’ll pull back.