2️⃣ARBITRAGE CAPITAL (The Ceiling) If the funding rate formula is the Anchor, institutional capital acts as the Ceiling. Whenever funding rates become attractive, billions of dollars from firms like @Ethena deploy their available capital to short contracts and collect yield. This pushes high funding rates back down. Just look below - Ethena’s undeployed capital is almost 12% of the total market’s open interest.(BitMEX)