Recently, the funding rate has been swinging in a pretty extreme way again. My first reaction isn’t to rush in and play the hero—I’d rather take screenshots of the order book and the funding rate first… to put it simply, I’m keeping evidence, so later I don’t just remember my feelings and forget the data. When the funding rate gets extreme, it looks very tempting to take the opposite side of the trade, but what I care about more is this: am I actually earning the funding rate, or am I betting that the next spike will punch through the stop-loss? Sometimes I’d rather dodge the volatility and wait until the funding rate returns to a normal range before proceeding slowly, so I don’t end up taking a couple more slaps.

Now looking at the current “yield stacking” in the re-staking/share security setup—yes, I understand the criticism that it’s just a copycat: extreme rates + stacked yields, and all too easily it turns into stacked risk. In any case, my approach is more conservative. I’d rather earn a little less than let one bout of volatility wipe out everything I’ve built up. Feel free to correct me—I’m still slowly adding notes in the comparison table.