Someone asked me how to handle funding rates when they get extremely extreme—whether to tough it out and trade against the other side to earn the funding, or just close the position outright to dodge the volatility. Honestly, this kind of market is really hard on people. When the funding rate is pushed sky-high, do you dare to add more? I’m really worried about catching a “flying knife.” And if you’re short, you’re also afraid of getting squeezed—getting taken out by a rally from the long side.

My approach is: if the funding rate becomes so extreme it’s downright ridiculous, I just lie low. I do some mindless tasks like grinding bricks to earn a bit of points, or I go into SocialFi and burn some transaction fees to build up reputation—at least then the costs are controllable. Besides, those unlock calendars lately look like a headache. Once sell-pressure anxiety kicks in, everyone starts worrying about stepping on a landmine. Better to stay cautious for now and wait until emotions cool down before deciding anything.