If you’ve ever traded a perpetual contract on a smaller token and watched the funding rate swing wildly enough to make your position feel like a coin flip, Paradex thinks it has a fix.
The privacy-focused decentralized exchange launched its Funding V2 system on June 16, bringing a multi-venue, impact-price-based approach to how funding rates are calculated. CEO Anand Gomes outlined the upgrade, which targets a problem that has quietly annoyed perp traders for years: funding rates on long-tail pairs that bear little resemblance to what the broader market is actually doing.
How Funding V2 actually works
Instead of relying solely on its own order book to determine funding rates, Paradex now computes what it calls an Impact Premium: a weighted median of price premiums sampled from Paradex itself and five other major trading venues, specifically Binance, Bybit, OKX, Hyperliquid, and Lighter.
Not all venues are weighted equally. Paradex carries a weight of 3.5 in the calculation, while each of the external exchanges, Binance, Bybit, OKX, Hyperliquid, and Lighter, receives a weight of 1.2.
