Rambling Currently on @HyperliquidX and @extendedapp, the price of $KAITO is surging, with a very high negative funding rate (many people are shorting), and long holders can collect funding fees. Opportunities - If you hold $KAITO spot, it might be better to sell the spot and switch to a 1x contract long, where you can earn a 3300% APR, which is quite enticing. - If you are a funding rate arbitrage player, the funding rate difference between Hyperliquid and Extended is nearly 2000%. Entering with 1x leverage for arbitrage can yield a 1000% APR. (It's advisable to put a bit more margin on short positions, based on experience.) Reason: Why is the funding rate for $KAITO so exaggerated? It is likely related to the recent large airdrop of sKAITO, as everyone rushes to Pendle to buy sKAITO's YT, which has currently driven the price up to 70%. The arbitrage army rushes in, buying sKAITO PT (selling KAITO spot at a discount), and shorting KAITO in the futures market (to hedge against...
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