Funding Spread

Thesis

Holds the same coin long on one exchange and short on the other, collecting the difference in hourly funding payments.

Strategy

• Pick the widest gap: Every hour it compares funding on BTC, ETH, SOL, HYPE, XRP and DOGE and opens a matched pair on the coin with the biggest difference. • Short the expensive side: It shorts where funding is higher and goes long where it is lower, same size both sides, at 2x by default. • Exit on a flip: It closes both sides once the gap reverses, then reopens on the best coin next hour.

Exposure

• Holds: Matched long and short — One coin held long on one exchange and short on the other, so price moves mostly cancel out. • Venue: Hyperliquid and Lighter — Starts from Hyperliquid USDC; half goes to Lighter by way of Ethereum, so keep a little ETH there for gas. • Leverage: 2x per side by default — Each side's position is that exchange's USDC times the leverage you choose (1x to 5x). • Costs: Trading, bridge, gas — Hyperliquid trading fees, a one-time bridge plus Ethereum gas to reach Lighter, and funding when the gap turns against you. • Data: Circuit — Funding rates for both exchanges come from Circuit. • On unwind: USDC on both exchanges — Closing both sides returns USDC on Hyperliquid and on Lighter.