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delta neutralAdvanced

Funding Rate Farming

Capture perpetual futures funding rate payments through hedged positions.

Typical APY Range10% - 50%

What Is Funding Rate Farming?

Funding rate farming captures periodic payments between long and short perp positions. When positive, longs pay shorts. Farm by taking receiving side while hedging spot. Yields 10-50% APY.

Hold spot long. Short equivalent perp. Collect positive funding when longs pay shorts. Position is delta-neutral. Monitor rates across venues.

Funding can flip negative causing losses. Execution and liquidation risk. Requires adequate margin. Variable and can flip.

Track funding with Fensory.

How to Get Started

  1. 1Monitor funding rates
  2. 2Buy spot
  3. 3Short perp
  4. 4Collect funding
  5. 5Monitor margin
  6. 6Unwind when flips

Pros

  • ✓Delta-neutral
  • ✓Clear yield source
  • ✓Trending markets
  • ✓Multiple venues

Cons

  • ✗Funding can flip
  • ✗Execution complexity
  • ✗Liquidation risk
  • ✗Margin needs

Put this strategy to work. See which protocols offer the best rates.

Track live yields, compare protocols, and build your DeFi portfolio with Fensory.

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