Recently, looking at RVV's market data, the derivatives side is really quite outrageous. The contract position size has reached around $12 million, but the project's market cap is only $6.74 million, which means the contract size is almost twice the spot market. With such a small spot market, the entire trading ecosystem is basically dominated by derivatives.

What's even more interesting is that the fee rate has already turned negative. Continuing to open short positions in a negative fee environment sounds tempting, but in reality, profits can easily be eroded by ongoing fees. Once retail investors follow the trend and open short positions, the fee rate may quickly adjust to a strong mode where fees are charged hourly, making holding short positions too costly.

From this perspective, trading strategies should follow the fee rate. When fees are negative, going long can actually be more cost-effective, as you can earn fee subsidies. If you really want to participate, it’s more stable to position low buy orders along the trend. I do not recommend going against the trend and hard shorting unless you are particularly confident, as the fee mechanism can eat into your profits.