It's known that trader (MM) generally doesn't engage in naked long or short positions (unless they identify it as smart/dumb money). Perpetual contracts offer two hedging logics: 1. Open a short position and hold the spot asset. 2. Open a long position and sell the spot asset. This mechanism allows you to: 1. Stake your own tokens to borrow USDT to open a short position. 2. Stake USDT to borrow tokens, sell them, and open a long position in the contract. This establishes basic liquidity, creating profitable opportunities for arbitrageurs/MMs. The focus of this article is to enable projects to attract external "MMs" themselves, creating interest rate and funding rate differentials, thereby allowing traders to build contract liquidity and act as their own "market maker"—establishing a basic level of liquidity. We shouldn't expect to get rich quick through this; the scale won't be large, but it's the foundation of liquidity. Why might this work? Because altcoins have inherently thin price charts, making them easy to breach; funding rates often reach hundreds of percent annualized; and the difference between funding rates and loan interest rates—these three factors interact to create a very interesting arena. Those who place orders might lose in the futures market but profit in the spot market, and vice versa; they might suffer heavy losses from funding rates but make a fortune from loan interest rates. This mechanistic imbalance creates arbitrage opportunities, which in turn create room for speculation, and this speculation creates liquidity. And all you need to do is be the one who gives the market the "first push." twitter.com/agintender/status/...