After a sharp rise and a fall, the funding rate became completely normal. Someone asked me where the high funding rate came from.

First of all, retail investors are generally bullish in anticipation of a bull market, and then retail investors will use their funds to increase leverage to open long positions.

However, there are not so many people in the market who are short-selling, so they need to make up for the shorts. Therefore, the quarterly futures will rise, and the perpetual will replenish the funds for the shorts.

Therefore, "short arbitrage" funds poured into the long counterparty market. "Short arbitrage" funds are 1:1 arbitrage and risk-free. The purpose is to hedge the futures and spot price difference or take away the capital fee. The rise and fall of the market has no risk relationship with them.

However, there were too many people going long, which led to the demand for "borrowing money." The capital began to be tense. "Interest rate liberalization" and not enough people for arbitrage, so capital fees began to rise. The positive premium of futures and spot prices continued to increase, and then continued to drive funds outside the circle into "short arbitrage." "The inflow of new funds will reduce the futures-spot spread and funding fees

Therefore, funding fees are highest when the price rises the fastest because the leverage ratio is the highest. Bulls are the most optimistic and willing to bear high funding fees.

Therefore, the bullish position was liquidated and there was no one to "borrow" money, so the interest rate went down. Therefore, it was the bull market that gave dividends to the entire industry.

Only when the big pie rises can there be copycat seasons. Only in the zoo season can there be high capital fee arbitrage. Only when the big pie rises can IEO have high returns. In every round of bull market, the big pie belongs to that industry. beta#热门话题 #aevo #Launchpool #BTC