Brothers, have you recently felt like you've been set up while playing with contracts? The price hasn't moved much, but your principal is slowly being deducted!
Behind this, there is the 'invisible scythe' that many people overlook - the funding rate.
And in this slaughter of funding rates for high-controlled altcoins, the only safe haven that might let you sleep peacefully could be something like @usddio, which is stable and trustworthy.
#USDD is a stable and trustworthy option
How did the funding rate become a harvesting tool?
Originally, the funding rate was meant to bring perpetual contract prices closer to spot prices, with both long and short parties paying each other small amounts to balance the market.
But now it has completely changed—becoming a precise weapon for high-controlled traders to harvest retail investors.
Many altcoins have reduced their settlement cycles from 8 hours to 1 hour, and rates can be as high as 2% deducted per hour!
Just think about it, if the price doesn’t move throughout the day, you could lose dozens of points, and your margin could be directly drained.
How do traders harvest using rates?
First lure in the bulls
Before driving up the price, attract retail investors to go long with low rates, creating stories to build momentum.Then raise the rates
Violently drive up the price, attracting trend-followers. Contract prices are far higher than spot prices, and funding rates spike to 1%-2% per hour instantly.Sideways bloodsucking
Prices remain stagnant at high levels, but the exorbitant rates are continuously siphoning money from long holders until the margin is exhausted.Finally, crash the market
Wait until retail investors are drained by the rates, then directly crash the market to unload, completing the ultimate harvest.
What's even harsher is that traders are arbitraging between different exchanges, creating illusions on exchanges with high rates while opening opposite positions on exchanges with stable rates, profiting both ways.
The three most deadly misunderstandings for retail investors
Misunderstanding one: The higher the rate, the more it rises.
Wrong! Extremely high rates are often a signal that traders are luring in bulls and preparing to harvest.Misunderstanding two: You can avoid rates by trading short.
Settlement cycles are now short, and rate fluctuations are severe; the cumulative costs of entering and exiting short positions may exceed your profits.Misunderstanding three: You can stabilize rates by shorting.
In high-controlled markets, rates are generally positive (bulls pay bears), but traders can explode the shorts at any time, posing significant risks.
In such a market, how do you survive?
If you don't want to become chives under the rate scythe, remember one thing:
Stay away from high-controlled, high-rate altcoin contracts, and keep most of your funds in stable places.
That’s also why many experienced players are starting to shift their positions to over-collateralized stablecoins like @usddio:
Don't worry about rate harvesting: USDD is pegged to $1, with no contract rate risk and stable asset value.
Can still earn interest: Placing it on platforms like Binance, Sun.io, or JustLend yields an annual return of 6%-20%+, the more chaotic the market, the more precious the guaranteed interest.
Can be deployed anytime: When you need to buy the dip or switch positions, USDD is fast across chains, with low fees, instantly turning into “bullets.”
In simple terms, while others are being secretly attacked by rates, you are quietly earning profits—that is the wisdom to navigate bull and bear markets.
Summary
The funding rate, this 'invisible scythe', specifically targets retail investors who don't understand the rules and blindly follow trends.
Rather than gambling at the table against a dealer who can see your hole cards, it's better to step back and put most of your assets in stable places like @usddio.
When the market is crazy, preserving your capital is winning.
When the market calms down, you'll have plenty of ammunition.
Remember: In a bull market, compete for profits; in a bear market, compete for survival.
Those who can survive are often those who have already found safe havens.