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Two interpretations with different implications: a) you're paid to go long so lots of people will buy b) the equilibrium is implying people _need_ to get paid to go long, so they must think things are going down

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SBF

@SBF_FTX

Nov 30, 2019

Heh let's try this again. If funding rates are negative (i.e. shorts pay longs), is that:

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Replying to

and

I don’t think that’s right. “I need to get paid to go long” feels like a weird thought given the Oracle will be higher than spot. Also if you’re on the fence and there’s a pay increase on a long position, how is that not bullish?

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Negative funding --> shorts paying to longs --> futures are trading _below_ spot, not above it

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and

I’m getting confused by your word choice. What do you mean by spot?

SBF

@SBF_FTX

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@JWestJest

Sorry, by spot I mean spot markets ~ index for the futures contracts ~ coinbase BTC/USD mid What do you mean?

3:57 AM · Dec 2, 2019Twitter Web App

Replying to

and

No worries text vs real life communication def harder. Spot should just mean current market price (I think?) The fact that the Oracle is a blended price and not an interactable market directly made me think of it intuitively as not spot.