What is funding rate arbitrage?

When funding on a perp runs strongly positive, longs pay shorts a meaningful amount every interval. You can collect that without any view on price: short the perp and buy the same amount of the asset on spot. Price moves cancel out across the two legs, and you keep the funding, minus fees.

The second version runs across venues. If ETH funding is 20 percent APR on one venue and 5 percent on another, you short where it is high, go long where it is low, and earn roughly the 15-point difference. The same idea sits under many delta-neutral vaults and some yield-bearing stablecoins.

Suppose you hold $10,000 of SOL spot and a $10,000 short SOL perp while funding averages 15 percent APR. Over 30 days that is roughly $123 before fees. If funding turns negative, the same setup starts paying out instead of earning.

Hedged does not mean safe. Funding can flip within hours. The short leg can be liquidated in a sharp rally if it is thinly collateralized, even while the spot leg gains. Spot and perp prices can drift apart. And on a thin spread, entry and exit fees can eat the whole return before you even count custody and contract risk on each venue.

Also called: funding arb, funding farming, delta-neutral funding.

The number a cross-venue funding trade chases is on Perps risk: for BTC, ETH and SOL it shows how far apart funding sits across Hyperliquid, Lighter and Aster, per hour and as APR. Hyperliquid markets shows the same kind of gap between Hyperliquid and the Binance and Bybit average, for Hyperliquid perps with at least $1M of 24h volume, widest first. Fees come out of either spread before you keep anything. Solana edge shows basis, funding APR and a longs pay or shorts pay tag for Solana spot against Hyperliquid perps. Cashboard only shows the data. Both legs are yours to place elsewhere.

• Perps risk
• Hyperliquid markets
• Solana edge
• Funding rates

• Funding rate
• Funding APR
• Cash-and-carry trade
• Basis
• Yield-bearing stablecoin