Once the funding rate hits an extreme, I usually don't rush to be the hero and take the opposite side first. I look at the spot market depth, perpetual positions, liquidation band positions, and casually note the inflow and outflow of the stablecoin pool: if USDT/USDC is being drained from the pool, and lending rates are also rising, it’s more like a “bank run-style position increase,” and going against it hard can be easily worn down. Conversely, if the rate is high but on-chain stablecoins are flowing back, LPs are still adding, and the basis is beginning to converge, I will use a small position to take the opposite side, hedge with enough margin, and accept losses as data collection. Recently, there’s been talk about tax increases and regulatory looseness, which basically has a big impact on deposit and withdrawal expectations. When sentiment shifts, the rate first goes crazy, and the price follows as a secondary effect… I’d rather earn a little less and avoid that wave of volatility first.