These past two days, the funding rates have started to swing to extremes again. In the group chat, a bunch of people are shouting, “Get in and profit off the funding rate,” but I actually feel like I should keep my distance… To put it plainly, extreme funding rates also mean extreme emotions. Trading against the other side isn’t impossible, but you have to admit you’re basically picking up money while standing on the edge of a flying knife. My approach is more like this: first shrink my position a bit; if I can hedge, I hedge. I’d rather make a little less than have my margin blown up by one sudden spike.

By the way, everyone’s been chatting intensely about modularization and the DA layer—developers are genuinely excited. But users (including me) sometimes really end up looking clueless: no matter how new the narrative is, it can’t stop short-term volatility from shattering people’s mindset. Last night, my mom even asked me, “You guys talk about funding rates every day—are those like bank interest?” I could only reply with half a sentence: “Sort of… but the risk is way higher…”

For now, that’s it—keep doing dollar-cost averaging and rebalancing, and don’t let your emotions lead you around.