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Backpack Exchange Updates: Hourly Funding and Real‑Time Yield
What's New
Starting August 20th, 2025 at 08:00 UTC, we're launching hourly funding payments on Backpack Exchange. This update brings three major features designed to improve your trading and yield experience:
- Hourly Funding Payments: Collect funding 24 times per day instead of 3
- Rates Strike: Visual countdown to each hourly funding event
- Portfolio APY: See your total annualized yield across all positions
Why We Built This
Our community has been clear: the standard 8-hour funding cycle concentrates yield into larger, less frequent credits. Moving to hourly funding distributes those same payments into smaller, more regular increments. This brings perpetuals in line with our lending markets, where interest is already paid hourly—effectively turning every hour into a payout.
Our analysis also shows that a significant share of open interest is driven by basis traders and yield strategies. To better serve these users, we developed Portfolio APY—a single, comprehensive metric that reflects net yield after all costs, providing a clearer view of overall performance.
How Hourly Funding Works
The Basics
Instead of settling funding every 8 hours, we now settle every hour. The calculation remains fair—we simply divide the daily rate by 24 instead of 3.
Example: If the funding rate is 0.24% daily
- Old system: 0.08% paid every 8 hours
- Our system: 0.01% paid every hour
Your total daily payment amount remains the same, but you receive them every hour.
What This Means for You
More Opportunities: With 24 funding events daily, you have more chances to earn the funding rate even if the position stays open for less than 8 hours and have more funding rates arbitrage opportunities.
Faster Compounding: Your yields compound hourly, improving long-term returns.
Better Risk Management: Smaller, frequent payments reduce your exposure to 8 hours rate spikes.
Meet the Rates Strike
Every hour, on the hour, we process all funding payments in what we call the Rates Strike. You'll see:
Progress Bar: A visual countdown showing exactly when the next payment occurs. No more guessing or checking timestamps.
Yield Monitor: Your expected payment (or charge) updates in real-time. Green numbers show earnings, red shows costs. Watch it grow as funding rates move in your favor.
This isn't just about making payments visible, it's about giving you control over timing and helping you maximize returns.
Your New Rates Footer
At the bottom of your trading interface, you'll find our new rates footer. This consolidated view shows:
- Lending Rates: What you earn on supplied assets
- Borrowing Rates: What you pay on borrowed funds
- Funding Rates: Current rates across all perpetual markets
Hot Rates
We've added a Hot Rates section that highlights markets with:
- High funding rates (>0.1% daily)
- Rapid rate changes (>50% in an hour)
- Strong arbitrage opportunities
No more clicking through multiple screens to find yield. Everything you need is in one place.
Portfolio APY: Your Performance Score
Portfolio APY answers a simple question: "What's my actual return?"
This metric automatically calculates your annualized yield including:
- Funding payments (positive or negative)
- Lending interest earned
- Borrowing costs paid
- All trading fees
Real Example
Let's say you're running a basis trade:
- Long 1 BTC spot: No yield
- Short 1 BTC perp: +15% funding APY
- Borrow USDT: -8% APY
- Portfolio APY: +7% (your net return)
Previously, you'd calculate this manually. Now it updates automatically as markets move.
Who Benefits Most
Basis Traders
If you're already using our spot and perpetual markets for basis trades, hourly funding directly improves your returns through:
- 8x more frequent compounding
- Perfect alignment with lending payments
- Clear profitability tracking via Portfolio APY
Active Traders
Take advantage of funding volatility with:
- 24 daily opportunities to capture rate changes
- Precise timing tools for entries and exits
- Quick identification of hot markets
Yield Farmers
Compare strategies at a glance:
- See combined yields from all positions
- Track performance across lending and perpetuals
- Optimize allocation based on real returns
Long-Term Holders
Even if you just lend or stake, Portfolio APY shows:
- True returns after all fees
- Compound interest effects
- Performance trends over time
Getting Started
For New Users
- Sign up at backpack.exchange
- Complete verification (takes minutes)
- Fund your account
- Start earning hourly yields
For Existing Users
Simply log in on August 19 to access:
- Hourly funding on all perpetual positions
- The new rates footer interface
- Your personal Portfolio APY
No action required—your existing positions will automatically switch to hourly funding.
Technical Details
Fair and Transparent
Our hourly funding maintains the same calculation methodology as 8-hour funding:
- Mark price calculation unchanged
- Index price weighting consistent
- Rate caps still apply (±2% per day)
The only difference is frequency—instead of three large payments, you receive 24 smaller ones.
What's Next
Based on your feedback, we're exploring:
- Automated basis trading strategies
- Funding rate alerts and notifications
- Historical APY charts and analytics
- Cross-exchange arbitrage tools
Start Earning Every Hour
Hourly funding launches Tuesday, August 19, 2025. Whether you're chasing yield, running sophisticated strategies, or just holding and earning, these updates make Backpack the best place to maximize your returns.
Questions? Our support team is available 24/7 at support.backpack.exchange.
See you at the next Rates Strike.
Note: Funding rates can be positive or negative. Past performance doesn't guarantee future results. Trade responsibly.
Learn more about Backpack
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Disclaimer: This content is presented to you on an “as is” basis for general information and educational purposes only, without representation or warranty of any kind. It should not be construed as financial, legal or other professional advice, nor is it intended to recommend the purchase of any specific product or service. You should seek your own advice from appropriate professional advisors. Where the article is contributed by a third party contributor, please note that those views expressed belong to the third party contributor, and do not necessarily reflect those of Backpack. Please read our full disclaimer for further details. Digital asset prices can be volatile. The value of your investment may go down or up and you may not get back the amount invested. You are solely responsible for your investment decisions and Backpack is not liable for any losses you may incur. This material should not be construed as financial, legal or other professional advice.
