Origination of Systematic Yield on Perp DEX’s

Funding-rate carry

Accrued funding over a period (for a venue with an 8-hour interval) can be modeled as:

$$\text{Accrued funding} \approx \text{position size} \times \text{mark price} \times \text{funding rate}$$

Annualization is based on the interval count (e.g., number of 8‑hour intervals per year).

Neutral funds size the receiving leg where funding is positive and hedge the price exposure via short positions.

Fee-share capture from LP tokens

Some perp DEXs distribute a portion of trading and borrow fees to liquidity providers. On Jupiter Perps, for example, the protocol takes 25 percent of pool fees, which implies the remainder accrues to LPs. A delta‑neutral strategy can hold the LP token and short the pool’s risk basket to isolate the fee stream.

Last updated 12 hours ago