Many people think that the market makers seem to have endless money, but have you really thought about where that money comes from?

Let me explain how this system operates. Ordinary financial financing costs are generally around 5%. For urgent projects or those with slightly higher risks, the financing cost can spike to 10%. For individual financing, the cost is even higher, usually not exceeding 15%.

But the crypto world is different. If a team doesn't have enough startup capital, they have to seek financing or collaborate with market makers. The cost of using these funds is conservatively estimated to start at 20%. The usual usage cycle is within one month; in other words: if you currently have $1 million USD, and a middleman approaches you for project financing, promising to pay back $1.2 million within a month. This number sounds frightening, but it's not unusual in this circle. The prerequisite is that you're willing to lend out the money—because this carries real risk. It's not like as soon as you become a market maker, you’re guaranteed to make a profit; large players still eat small fish in this market.

So how can you profit from financing costs? The way is: first, earn this financing cost to keep trading active, then do a round of harvesting. From another perspective, if a project can openly manipulate the market and do so recklessly, it must have strong backing. This isn’t a secret, it’s just something you don’t usually think about.

Currently, some tokens in the market are engaged in liquidity hunting, with manipulations on both upward and downward swings. I can't specify exactly on which platform or against which trading pairs; the details are unclear, but it boils down to the two main exchanges. From the exchanges’ perspective, they definitely don’t want to be used as pawns. Currently, the funding rates are still within acceptable ranges, the deviation in price isn’t too crazy, and the bearish sentiment isn’t as intense as before. Many have shifted to a more bullish outlook after being scared earlier.

What happens if the market takes an extreme turn? That will be a different story then.