Spot-perp basis for yield ๐Ÿ’ฐ

Choppy market and you still want return without directional exposure? This is my go-to. Go long spot, short the perp in the same size, and harvest the carry while staying neutral. Example ๐Ÿ‘‡

โ€ข Let's say you have $20,000

โ€ข Go to Hyperliquid perps.

โ€ข Buy $15,000 worth of HYPE on spot.

โ€ข Open $15,000 HYPE short position with 3x leverage using $5000 in margin.

โ€ข Use your spot HYPE coins to earn additional APR by depositing them in Pendle to earn a fixed yield.

๐Ÿงฎ The result:

๐ŸŸขSpot yield (Pendle 13.9% on $15,000)

= $2,085 per year โ‰ˆ $5.71 per day

๐ŸŸขPerp funding (18% on $15,000 notional)

= $2,700 per year โ‰ˆ $7.40 per day

๐ŸŸขIn total you get paid:

$4,785 per year โ‰ˆ $13.11 per day = 23.9% APR ๐Ÿค”

But be careful: funding can invert. Avoid high leverage, set price alerts to not get liquidated, and prefer splitting spot and perp across wallets or subaccounts.

When I like it: after strong pumps when funding is rich, or during newsy weeks when basis stretches. When funding normalizes or goes negative for a while, I close it and wait for the next window ๐Ÿ‘€