What makes AAVE different
AAVE holders often already earn yield elsewhere on chain, so the perp funding decision is really about whether the extra leg adds return or just concentrates DeFi exposure.
The main AAVE failure mode
Stacking a perp position on top of existing protocol exposure doubles the same risk while the funding APR makes it look diversified.
The wallet-level question
How much of this wallet already moves with the DeFi complex before this leg is added?
AAVE funding decision checklist
Funding is peer-to-peer and settles hourly. The worked example below is arithmetic, not a live quote or return forecast.
| Check | What to verify |
| 1 | Map existing on-chain DeFi exposure |
| 2 | Compare perp funding with the yield already earned |
| 3 | Check correlation with the rest of the book |
| 4 | Confirm margin survives a sector-wide drawdown |
Worked example: at $10,000 oracle notional, an hourly funding rate of 0.01% implies a $1 payment for that interval before trading fees, slippage, and price PnL. Payment direction depends on the sign of the rate and the side of the position.