Capture perpetual futures funding rate payments through hedged positions.
Delta neutralAdvanced
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
1Monitor funding rates
2Buy spot
3Short perp
4Collect funding
5Monitor margin
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.