The funding rate stuff sounds interesting I’ll have to try and dig into that to understand it better.
Shocked we got 100k! I’m sure I’ll be hearing from some of my friends on these wild prices!
The funding rate stuff sounds interesting I’ll have to try and dig into that to understand it better.
Shocked we got 100k! I’m sure I’ll be hearing from some of my friends on these wild prices!
Here's the post I wrote on it last month.
https://peakd.com/hive-167922/@edicted/funding-rate-as-the-ultimate-topbottom-signal--211
Dope thanks!
Yeah the funding rate is weird... basically it ensures that the futures price on the perpetuals market is very closely pegged to actual spot price of the asset. When too many people are going long BTC will trade a couple hundred dollars higher on perps vs spot. The funding rate then forces longs to pay shorts more money to bring the perps price back into alignment.