It's here! @HyperliquidX x @boros_fi
2 new markets, BTC and ETH - with 1 hour funding intervals
I am short ETH rates again
- Funding is flat right now on HL, annualised rates are 10.95% APR
- Implied rates are almost 10% APR, that's only a 10% APR if rates remain the same. Historically on the Binance markets, never really saw anything as close to underlying rates.
- I can profit as long as implied rates drop below 9%
- Historically, rates went negative on 3 seperate occasions in the last 2 weeks
- If that can happen again, I think implied rates drop and I can profit
TLDR - downside is capped, upside is potentially big (Yes, It's like buying a call option on HL ETH perp rates to drop in the next month)
Can we make 10-20% on this trade in the next 1 week?
Update to my @pendle_fi x @boros_fi trading series
On the 5th we saw some wild spikes on rates. I took advantage here and exited my longs.
- The move was super fast, looked like a few players were longing and causing the increase in price
- Funding rates were flipping positive again but usually implied rates take a little while longer to price in, it just felt a little too fast for me
- High 7's is good enough risk wise to exit or at least begin exiting. I personally felt better to just de-risk.
Managed to take a screenshot below to show what my position looked like at the time.
Fortunately I did close because this went all the way back down as funding rates went from -10%, to 10%, then back to -8% all within a couple hours.
Since then prices have been up-trending slowly although I've been on the sidelines now sitting flat on ETH.
If there is anything for me to trade atm, it'll be shorting BTC rates in the mid to high 7's.
Until then I'll be waiting for a better trade opportunity - Hyperliquid markets will certainly add to the vol and fun.
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