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STRATEGY · FUNDING FARM
Delta-neutral farm
Hold an asset and short the same amount of it on a perp exchange. Price moves cancel out; what is left is the funding paid to the short, plus whatever the asset itself earns.
on real money since May 202511 perp venues trackedNot financial advice
How it works
Your capital
Split in two
The long leg, and margin for the short.
Two legs of the same size:
Long leg
The asset
Spot, or a version that earns on its own.
Short leg
Perp short
Same size, low leverage, collects funding.
Both legs
Price moves cancel
What one leg gains on price, the other loses.
Your return
Funding + yield
What the short collects plus what the long leg earns.
Good to know
Paid every intervalHourly on most perp DEXs, every 4-8 hours on the big CEXs.
Points on some venuesSome exchanges also pay points on top of funding.
Can turn negativeThen the short pays: watch 30 days, not today's rate.
Exit = close both legsClose the perp short and sell the long leg.
Our live portfolio
Equity, live$12,543.69
PnL since start+$2,543.69
APY, annualized+18.2%
Where a short earned most this week
| Asset | Venue | 7d APR | 30d APR | Neg. 30d |
|---|---|---|---|---|
| HYPE | Pacifica | 13.98% | 9.09% | 11% |
| SOL | Pacifica | 7.79% | 4.95% | 26% |
| ETH | Pacifica | 15.56% | 10.00% | 7% |
| BTC | Pacifica | 10.39% | 9.37% | 5% |
Funding as an annual rate. A rate is not a reason on its own: check who holds the margin, and our report on the venue where we have one, before moving margin. Every venue on the funding board
Size your own
The calculator splits your capital between the long leg and the short's margin and prices it with live funding on every venue we track.
What it costs to get out of our trades
Both legs of each trade at three sizes: closing the perp short and selling the actual long leg. Each of our legs is under $10k, so the $10k column is the closest to us.
HYPE delta-neutral
| Leg | $10k | $100k | $1M |
|---|---|---|---|
| Close the HYPE short · Pacifica | 1 bp | 6 bp | beyond book |
| Sell PT kHYPE for kHYPE · Pendle | 1 bp | 2 bp | 46 bp |
| Both legs | 2 bp | 8 bp | beyond book |
PT kHYPE can also be held to maturity on Mar 25, 2027 and redeemed at par instead of sold.
SOL delta-neutral
| Leg | $10k | $100k | $1M |
|---|---|---|---|
| Close the SOL short · Pacifica | <1 bp | 4 bp | beyond book |
What can go wrong
- Funding turns negative. Then the short pays instead of earning. Watch the share of negative hours over 30 days, not today's rate.
- The short gets liquidated. A fast rally eats the short's margin while the long's gain sits on another venue. Keep leverage low and margin to spare; our portfolio alerts on the distance to liquidation.
- The exchange holding the margin. A perp exchange can freeze withdrawals or be exploited. We have reports on some of these venues, not all; where we do, the venue's name links to it.
- The long leg's own risk. A staked token can trade below its asset and takes days to unstake at full value; a PT trades at a discount and reaches par only at maturity.
- Getting out costs something, more at size: the table above shows how much.
The pairs we farm are also in our latest monthly picks.