USD DEX Funding Rate Arbitrage

The strategy generates returns from funding rate differentials across centralized perpetual exchanges, with no directional exposure to the underlying assets. Funding rates on the same asset frequently diverge between venues, and the strategy captures that gap by holding a long perpetual on the venue paying the lower rate against an offsetting short on the venue paying the higher rate. Notional is matched across the two legs, so price moves cancel out and the strategy earns the funding rate differential at each settlement cycle.

Your capital stays in sub-accounts you own at each supported venue, and Blockhouse trades it through API keys you create with trade and read permissions only. Withdrawals are not enabled, so the assets remain in your control. A systematic risk engine runs alongside execution, tracking ADL queue position, venue liquidity, hedge integrity across the paired legs, and counterparty concentration. Its outputs feed directly into position sizing, venue selection, and trade timing, so the strategy adapts as venue conditions change.

This DEX version of the strategy adds on-chain perpetual exchanges to the venue set, opening up funding spreads between centralized and decentralized markets in addition to the cross-CEX trades. Following the self-custody of the base strategy, positions are still held in wallets or sub-accounts you control, and Blockhouse executes through scoped session keys with no withdrawal or transfer permissions.