Andre Cronje: Perpetual swaps target 0.01% funding rate every 8 hours

Andre Cronje: Perpetual swaps target 0.01% funding rate every 8 hours
Perpetual swaps funding rate explained

Andre Cronje, chief technology officer at Sonic Labs (formerly known as Fantom), addressed community questions about funding mechanisms on @flyingtulip_ TRS compared to perpetual swaps.

He explained that while both structures have the same capital efficiency, perps target a mathematical funding rate of 0.01% every eight hours, equivalent to an annual rate of 10.95%.

Cronje previously reported that USDC and USDT on Ethereum generated yields of about 14.71%, while USDC and USDD on Sonic earned 7% through lending programs, according to recent tracking. He also highlighted that users could earn up to 18.50% on USDC or USSD via ftUSD on Sonic, based on platform data published earlier this year. Borrow rates for BTC and ETH remained below 1% at the time.

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