POLYX recently experienced an extreme negative fee rate of -1.22%, which is actually an interesting signal in the contract market.

First, let's talk about what this negative interest rate means—short sellers have to pay 1.22% to long holders every 4 hours. Sounds like not much? But when calculated, it can be quite painful, especially for short sellers with long holding times, as their psychological defenses can easily break down. Moreover, the price dropped from 0.056, hit a low, and then rebounded to around 0.054. With the continuous bleeding from the negative interest rate, many short sellers have begun to be forced to close their positions. In the recent cycle, the amount of short seller liquidations reached 28,500 USD, while long sellers only faced 56,100, clearly indicating that short sellers are suffering.

Looking at the data, the perpetual contract open interest is 10.37 million USD, with a 24-hour trading volume of 84.41 million, indicating high capital activity. Combined with the negative funding rate, this seems more like the main players using the funding rate leverage to accumulate positions rather than simply being bearish. On the spot market, the buying pressure is also quite stable, with no obvious selling pressure, creating a typical situation where the short position crowd is being cleared—fuel for a short squeeze has already been piled up.

We also need to clarify the risks. If there is suddenly a wave of selling pressure in the spot market, it may induce a short squeeze in the short term, but under the current rate pressure, this probability is not high. Additionally, the overall market's correction following the major indexes is also a variable. However, from a fundamental perspective, the institutional interest in the RWA sector is still present, and there are no negative signals from project parties or exchanges.

In terms of operational strategy, you can consider building a position around the current price of 0.054, or add to the position during a slight pullback. The first target is set at 0.058-0.060, which is the recent high point of fluctuations. Based on this range, there is a potential for a 20-30% increase, which can roughly cover the advantage of negative fees. Don't be greedy with the stop loss; set it at 0.052, which is no more than 4% below the recent low point, so that risk can be controlled.