Understanding Perpetual Futures Funding Rates

This post has no math. Funding rates are explained intuitively with diagrams to aid visualization. This post is a simple high level overview for traders considering using perpetuals and the curious. We’ll leave the details and formulas for a future post aimed at anyone wanting to incorporate advanced trading strategies or build their own perpetuals […]

Rightsizing the Maximum Funding Rate of Perpetual Futures

Funded by dYdX Grants. There have been a number of occasions in dYdX v3 where the maximum funding rate has been insufficient to incentivize convergence between a perpetual market and its underlying. This has led to interventions such as increased initialMarginFraction and use of ‘close-only’ mode which hamper trader user experience. The proposal is to […]

Framework for Setting dYdX Margin Risk Parameters

Funded by dYdX Grants The lack of a consistent framework for setting margin parameters leads to ad hoc, adjustments and sub-optimal risk management.  Sub-optimal risk management means exchanges cannot scale as much as they potentially could. We provide a framework for orderbook perpetual futures exchanges to consistently set these parameters as a function of observed […]

Business as Usual: Uniswap v3 Open Sourced

Most charts used in this post come from and are updated in this dashboard: https://dune.com/consideredfinance/uniswap-v3-license-expiry The story hasn’t begun yet. The Uniswap v3 license transitioned to a general purpose license 2.0 just over a month before publication of this post. Over this period 9 forks of the protocol have gone live, mostly on chains without a […]