Backpack introduces +11% APR base rate to perpetual contract funding fee mechanism, benefiting hedging trading strategies
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Backpack introduces +11% APR base rate to perpetual contract funding fee mechanism, benefiting hedging trading strategies
TechFlow news, May 13 — Starting May 13 (Monday), Backpack Exchange announced the introduction of a standardized +11% annualized base rate into its funding rate calculation formula for perpetual contracts. This update aims to align with the funding rate structures of mainstream industry derivative exchanges while enhancing overall market liquidity and trading activity. The new mechanism does not alter the original funding rate calculation logic; instead, it further optimizes the funding rate environment by introducing a persistent positive bias, particularly benefiting delta-neutral strategy participants by providing more attractive funding rate arbitrage opportunities.
Navigating Web3 tides with focused insightsTechFlow news, May 13 — Starting Monday, May 13, Backpack Exchange announced the introduction of a standardized +11% annualized base rate into its funding rate formula for perpetual contracts. This update aims to align with the funding rate structures of mainstream industry derivative exchanges while enhancing overall market liquidity and trading activity.
The new mechanism does not alter the original logic of funding rate calculations. Instead, by introducing a persistent positive bias, it further optimizes the funding rate environment—particularly benefiting delta-neutral strategy participants by offering them more attractive funding rate arbitrage opportunities.
