More Perpetuals

Today was a pretty good day.

I have a local WordPress server running here at the house. I set it up as a private family blog last year, but didn’t have it set up properly so it hasn’t been accessible. I fixed it today. I had some pictures of the girls from last July and a canoeing trip that we took. The last post was in August of last year when we got the cats. I got it set up as the home page on the various workstations that we have here at the house, hopefully I can inspire the rest of the family to update it as well. It should be a fun chronicle

I can’t stop thinking about Perp.Fi. I’ve been checking it almost hourly, running calculations and what ifs. A 1 BTC position with 1.5x leverage is generating funding more than my previous salary. I’ve got a liquidation price around $15k, and I think there is zero chance that we ever see BTC prices at that level. So I’ve been looking at rates for certain position sizes and liquidation levels and figuring out what the weekly income is. I could reasonably be pulling in between five and fifteen thousand dollars a week. It’s breaking my brain.

Another option is to keep my modest leverage rate and increase the amount of capital. The risk here becomes one of too many eggs in one basket, as I’ll be concentrating my funds in one position. Very risky. On the flip side, Nexus Mutual has coverage for Perp at a reasonable 2% rate. That’s very reasonable. I’m almost tempted to convert some of my cold storage bitcoin. But I feel like I’m being greedy.

All I really have to do is wait. As the funding pays out, it lowers my liquidation cost. I can remove margin at intervals, and open additional longs to maintain a set margin rate. And as the price of BTC increases over time, so shall the payouts. The risk here is that the funding rate turn positive at some point. I’m not sure how to evaluate this risk, given that I don’t fully understand the reason why rates are negative in the first place. I assume it’s because it’s the easiest way to short ETH and BTC without going through a KYC process. That’s certainly why I’m using it.

Still, part of me fears that this opportunity won’t last, and hence the FOMO that I have. I should be happy, making money for nothing, but part of me wants to crank the knobs up to eleven and go crazy. I might need to find a way to do that with a smaller, separate account that will allow me to manage risk a bit better.

I think I might just know how to do that.

Leave a Reply

Your email address will not be published. Required fields are marked *