🐈Hyperliquid Funding Arb (USDC)
Strategy Description
The Hyperliquid Funding Arbitrage Vault uses a fully automated, delta-neutral trading strategy. This approach aims to generate steady returns while minimizing directional risk. This vault earns yield by arbitraging funding rate imbalances in perpetual future markets on Hyperliquid.
In addition, 10% of USDC reserves are allocated to the Hyperliquidity Provider vault (HLP). This additional exposure helps to diversify yield sources and stabilize returns during periods of extreme bearish volatility.
Strategy Design
Deposit USDC on Solana The strategy accepts USDC deposits. This gives users an easy on-ramp to a complex arbitrage strategy.
Delta-Neutral Positioning Capital is automatically allocated into spot and perpetual futures positions, for example:
Long 1 HYPE in spot → delta = +1
Short 1 HYPE in perps → delta = –1
Net delta = 0
Funding Capture These positions aim to profit from market demand for leverage, just like professional trading desks do.
Yield Sources
Perpetual Funding Payments: Paid by overleveraged counterparties
Price Inefficiencies: Between spot and perp markets on Hyperliquid
HLP: From market-making strategies, liquidation fees, and platform fees
Asset Coverage
USDC
BTC
ETH
PUMP
HYPE
FARTCOIN
XPL
PAXG
XAUt
HLP
Automation & Risk Management
The vault is built for passive participants but powered by an institutional-grade backend:
Real-time rebalancing to preserve delta-neutrality
Smart execution to reduce slippage and maintain edge
Liquidation-aware logic with low leverage exposure
You don’t have to trade, watch the markets, or stress about margin calls. The system takes care of it all for you.
Fees & Withdrawals
Commission: 25% (charged only on net positive PnL)
Service Fee: None
Withdrawal Period: 3 Days
Subscription Period: 24 Hours
Deposit Lock: 3 Days
Hyperliquid Funding Arb Vault date release - 11 June 2025
Last updated