Grvt’s approach differs significantly from other perpetuals, redefining capital efficiency. Many focus on 10% or 11% yields, but behind this lies a combination of margin and a yield layer—essentially capital reuse, akin to the logic of investment banks. At its core, Grvt is engaged in one fundamental activity: rehypothecation—using your funds to generate returns elsewhere. This is common in traditional finance, such as in banking. What happens when this mechanism scales on-chain? You can imagine for yourself. This is a classic “double-edged sword” model: on one hand, capital is never idle, yields rise dramatically, and capital efficiency explodes; on the other hand, all returns depend entirely on the stability of the underlying protocols. If something goes wrong externally, it’s not a single point of failure—it triggers a chain reaction. For example, recently, Grvt withdrew funds from Aave. Opinions vary on this move, but robust risk management is key. Thus, Grvt isn’t merely building a perpetual trading platform—it’s transforming your trading account into a “capital production machine.” Yet all such machines share one common trait: they are procyclical. In good times, they’re printing presses; in bad times, they become amplifiers. Especially in today’s countercyclical environment, even minor differences in capital efficiency lead to vastly different outcomes. Whoever can extract maximum efficiency from your capital gains a relative advantage.