Discover and read the best of Twitter Threads about #FundingRate
Most recents (3)
What is Funding Rate?
Since perpetual futures do not have defined end dates, a price-anchoring method called a “funding rate” is established. It provides regular payments between buyers and sellers.
#Fundingrate #Perpetualfutures #zenith #Defi #tezos #web3community
Since perpetual futures do not have defined end dates, a price-anchoring method called a “funding rate” is established. It provides regular payments between buyers and sellers.
#Fundingrate #Perpetualfutures #zenith #Defi #tezos #web3community
The funding rate balances short and long positions by incentivizing a market balance. It’s like a rebate or fee to keep the market balanced.
The funding rate mechanism helps ensure the perpetual derivative contract price is close to the spot price. Exchanges use an oscillating price marker to determine if the longs or shorts need to pay fees or receive rebates.
ARE WE AT DEC 2020 (ROCKET-LUNCH) LEVEL AGAIN?
🧵/1. Here in this 🧵we look at the market structure from #onchain & #FuturesMarket perspectives and compare it with Dec 2020, when the price was breaking above the 2018's (20K) ATH for second time!
🧵/1. Here in this 🧵we look at the market structure from #onchain & #FuturesMarket perspectives and compare it with Dec 2020, when the price was breaking above the 2018's (20K) ATH for second time!
🧵/2. First, looking at the Monthly-Realized Profit Oscillator, we can see, similar to Dec 2020, market is approximately realizing equal to 5% of the total #RealizedCap monthly. This means we have not witnessed the old coins realizing profit at a concerning rate yet ( >10%). 
🧵/3. The #FuturesMarket also has the same sentiment that the market had in Dec 2020. The #FundingRate is rising gradually, and #OpenInterest momentum (30D-RSI) has dropped (after reaching a new ATH; 67K) to the same level we saw in Dec 2020; 20K>18K> 🌙(Dec 20) = 67K > 58K > ?
1/10-Going through the 2nd week of the biggest corrections of this cycle (~ 50%), the ultimate questions in market are,
-Whether the cycle is over?
-How are the Exchange Flow conditions?
-What is the picture that on-chain metrics are giving about market in long-term?
🧵🔽
-Whether the cycle is over?
-How are the Exchange Flow conditions?
-What is the picture that on-chain metrics are giving about market in long-term?
🧵🔽
2/10- All-Exchanges Reserve has been declining since the beginning of this bull market. This trend was then upward on April 24th after prices dropped 64K > 50K [1A] = on-chain bearish sign.
