Delta Neutral Funding Rate

The Delta Neutral strategy aims to earn funding rate income while hedging against price movements. It combines a lending position on Aave v3 with a short perpetual position on APX Finance.

graph TB
    A["Deposit USDT"] --> B["Supply to Aave v3<br/>(Spot Long)"]
    A --> C["Short Perpetual<br/>on APX Finance"]
    B --> D["Spot + Short = Delta Neutral<br/>No price exposure"]
    C --> D
    D --> E["Earn Funding Rate<br/>Income"]
    style A fill:#1A3FBA,color:#fff,stroke:none,rx:8
    style B fill:#4568D0,color:#fff,stroke:none,rx:8
    style C fill:#81A1EE,color:#fff,stroke:none,rx:8
    style D fill:#EEF1FB,color:#1E2A4A,stroke:#81A1EE,rx:8
    style E fill:#1A3FBA,color:#fff,stroke:none,rx:8

How it works

1. Deposit USDT as your base capital
2. Supply a portion to Aave v3 to earn lending interest
3. Open a short perpetual position on APX Finance using the same asset
4. The spot exposure (from Aave lending) and the short exposure (from the perpetual) cancel each other out, making your position "delta neutral" — meaning you are not exposed to price movements
5. Earn funding rates — when the market is bullish, shorts often receive funding payments from longs

Setup steps

Step 1: Choose your deposit token

Currently, USDT is the supported deposit token.

Minimum deposit: $250

Step 2: Choose your token index

Select which asset to use for the cash-and-carry position:

When does this strategy work best?

• Bullish markets — funding rates tend to be positive (shorts get paid)
• High open interest — more trading activity means higher funding rates

Key differences from other strategies