Hyperliquid takes action: a 4% hourly funding-rate cap, slashed to 0.5%
🔻 What’s going on
Today, Hyperliquid’s founder Jeff Yan posted an announcement on Discord: at the next network upgrade, the funding-rate cap will be cut from 4% per hour down to 0.5%. In his exact words, he also added: “In practice, it’s extremely rarely triggered.” He also loosened the deployment limits—tightening the reins.
🔻 Who’s most comfortable
Those running low-frequency strategies, doing hedging, and earning from the basis are the most comfortable. The platform is forcing everyone not to get dragged into a funding-rate warfare. Pure “harvesters” who only farm high funding rates will take less meat on the weekend, especially in the late-night session. Big BTC/ETH positions are less affected, while altcoin contract order books are actually thicker.
🔻 Watch this weekend
This isn’t a bearish or bullish signal. It’s the platform’s self-protection against extreme pinning scenarios that could make them the ones to take the blame. BTC just touched 85117 again; the current price is directly above 85004. The 4-hour chart is oscillating and recovering, but sell pressure overhead is still there. With leverage “washed” being made more gentle after the fee-rate cut—can 85,000 stay put this time? Or will it touch 85,000 and then fall back to 84,000?
🔻 What’s going on
Today, Hyperliquid’s founder Jeff Yan posted an announcement on Discord: at the next network upgrade, the funding-rate cap will be cut from 4% per hour down to 0.5%. In his exact words, he also added: “In practice, it’s extremely rarely triggered.” He also loosened the deployment limits—tightening the reins.
🔻 Who’s most comfortable
Those running low-frequency strategies, doing hedging, and earning from the basis are the most comfortable. The platform is forcing everyone not to get dragged into a funding-rate warfare. Pure “harvesters” who only farm high funding rates will take less meat on the weekend, especially in the late-night session. Big BTC/ETH positions are less affected, while altcoin contract order books are actually thicker.
🔻 Watch this weekend
This isn’t a bearish or bullish signal. It’s the platform’s self-protection against extreme pinning scenarios that could make them the ones to take the blame. BTC just touched 85117 again; the current price is directly above 85004. The 4-hour chart is oscillating and recovering, but sell pressure overhead is still there. With leverage “washed” being made more gentle after the fee-rate cut—can 85,000 stay put this time? Or will it touch 85,000 and then fall back to 84,000?
