Difficulty: MEDIUM
Risk Level: LOW
Timeframe: 1-3 day carry
Objective
Generate yield by holding the side of the market that receives funding, while hedging price risk using spot, 1001x Simple, or external venues.
Prerequisites
- Access to Perpetual Pro and spot/intent liquidity.
- Ability to bridge/transfer USDT or BNB quickly.
- Spreadsheet or dashboard to track cumulative funding (AsterDEX analytics).
- Comfort with margin maintenance over multi-day windows.
Setup Steps
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Identify funding skew
- Target markets with funding > +0.05% (for shorts) or < -0.05% (for longs) sustained over 4 periods.
- Verify open interest trend: prefer climbs that align with funding direction (indicates crowding).
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Construct position
- Example (receiving funding): Short Perpetual Pro, buy equivalent spot via PancakeSwap/1001x Simple.
- Size so that daily funding covers 2× estimated fees + borrow costs.
- Use isolated margin to firewall strategy from other trades.
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Monitor basis
- Track perp vs spot delta; if spread narrows too much, yield may evaporate.
- Rebalance if net delta deviates >0.5% from neutral.
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Risk controls
- Cut if funding reverts toward zero for two consecutive periods.
- Enforce max holding period (72 hours) unless funding remains extreme.
- Maintain 1.8× maintenance margin buffer to avoid forced closes.
Optional Enhancements
- Deploy spot leg into Aster Earn (asBNB, asUSDF) if redeem window allows, to stack yield.
- Hedge spot leg with stop-loss 3% away to defend against tail risk.
- Automate funding capture log via API for PnL tracking.
Exit Criteria
- Funding collapses below threshold.
- Opposite crowding emerges (open interest flips).
- Macro shock (volatility index spikes, major news) increases directional risk.
- Target yield achieved (e.g., 1.5% account gain).
Key Metrics
- Net funding received vs. fees.
- Delta drift (perp - spot).
- Liquidity depth on spot; can you unwind without heavy slippage?
- Opportunity cost vs. other strategies running concurrently.
This loop thrives when the market is one-sided. Stay nimble, unwind quickly when imbalance disappears, and treat funding as a bonus—not a guarantee.***
Ready to Implement This Strategy?
Remember: This strategy is rated medium difficulty with low risk. Only invest what you can afford to lose completely.
