These days, the funding rates are fluctuating wildly again. Someone in the group said, "When it’s extreme, just go against the market," which sounds pretty cool, but I usually don’t dare to go all in. Honestly, extreme rates are either caused by overheated emotions or thinning liquidity. If a needle suddenly pricks the system, the liquidation line won’t give you any mercy. I first check whether the borrowing utilization rate is also acting up, and whether the collateral correlation is all tied together. If all these are heading in a bad direction, I’d rather tighten my leverage or even hide from volatility, earning less is fine.

By the way, recently, before and after the main public chain upgrade/maintenance, everyone’s guessing whether ecosystem projects will migrate. I actually care more about: if the chain gets overwhelmed or oracles update slowly, causing rates and interest rates to spike together, you might think you’re just paying fees, but really you’re betting that the system won’t shake. Anyway, my current choice is: if the rates are extreme but conditions aren’t clean, I won’t act like a hero.

That’s all for now.