How to analyse funding in the crypt?

Here is a small simplified review for crypts, for whom this topic is new.

What is funding for and what is it like

⚪️Funding equalises the price of perps with spot.

⚪️Negative funding = more shorts, positive = more longs.

⚪️Look at funding on several exchanges at once - market makers are hedged, and rates can be distorted.

⚪️The funding itself does not say whether it's a bull market or a bear market.

Negative funding

⚪️Usually appears during volatility jumps, when shorts prevail over longs.

⚪️Sharp pumps with a downtrend often cause extremely negative funding - this is a consequence of short squizs.

⚪️In a bearish environment, such squises occur more often.

Positive funding

⚪️It's the opposite here - longs prevail over shorts.

⚪️Very high funding is a rarity and a sign of overheating.

⚪️Positive funding on the fall often means that longists are "slammed" and they are averaged in disbelief.

⚪️Funding should grow with OI - discrepancy may be a sign of weakness