Perpetual futures have price differences based on market sentiment. The futures market adjusts these price differences through the Funding Rate. When futures prices are high, longs pay shorts, and when low, shorts pay longs to balance spot and futures prices. By utilizing this structure, an investment strategy exists where one can buy spot assets, take a short position in futures to hedge price fluctuations, and earn income through funding rates. We have compiled top assets showing profit opportunities through real-time data with high funding rates. [Editor's Note]
As of August 15th at 9:45 PM, according to DataMaxiPlus, Treasure(MAGIC) showed the highest profit rate in funding rate-based arbitrage strategies. By taking a short futures position on Gate.io and buying spot on Byget, with a -0.208% 8-hour funding rate, the annualized return is approximately 9.11%, with expected annual earnings of $45,486.
The same MAGIC asset also shows similar attractiveness with strategies combining HTX, Bybit, Gate.io, OKX, and Binance spot markets, generating over $45,000 in annual returns.
The next high-yield asset is Self Chain(SLF), which generates -0.7999% funding rate when combining Binance spot purchase and Bybit futures short, with an estimated annual income of about $43,729. The Mexc futures and Binance spot combination shows similar levels.
IDEX also provides a -0.797% funding rate with Byget spot and Bybit futures combination, offering approximately $43,573 in annual profit opportunities. The Gate.io spot and Bybit futures combination shows identical results.
Such strategies minimize price risks by maintaining short positions in futures markets while holding spot assets, enabling continuous income generation through negative funding rates.
However, margin trading involves various risk factors such as fees, asset transfer times, and slippage, so thorough review before implementation is necessary, and the sustainability of funding rates must be continuously monitored.
Current Highest and Lowest Funding Rate Assets
๐ผ Top 5 Highest Funding Rates
โฒHTX's PIPPIN(Annualized 2.74%)
โฒGate.io's Altura(ALU)(2.59%)
โฒGate.io's CZ'S Dog(BROCCOLI)(2.32%)
โฒdYdX's Pendle(PENDLE)(1.91%)
โฒdYdX's Akash Network(AKT)(1.55%)
๐ฝ Bottom 5 Lowest Funding Rates
โฒdYdX's Akash Network(AKT)(1.55%)
โฒdYdX's Pendle(PENDLE)(1.91%)
โฒGate.io's CZ'S Dog(BROCCOLI)(2.32%)
โฒGate.io's Altura(ALU)(2.59%)
โฒHTX's PIPPIN(2.74%)
When funding rates are high or positive, long position demand increases, making futures prices relatively more expensive than spot prices, requiring longs to pay shorts. Investors can secure funding rate profits by implementing spot purchase and futures short strategies.
Conversely, when funding rates are low or negative, short position demand increases, making futures prices lower than spot prices, requiring shorts to pay longs. Investors can maximize funding rate arbitrage by utilizing spot selling and futures long strategies.
Funding rate arbitrage is a strategy that can aim for stable returns regardless of market volatility, usable even when long-term market direction is difficult to predict. However, as funding rates are highly variable depending on market participants' position ratios, a strategic approach considering funding rate differences between exchanges and capital costs is necessary.
[This article does not provide financial advice, and investment outcomes are the sole responsibility of the investor.]
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