NVIDIA (Derivatives) (NVDA)

Update - NVDA Funding Rate Arbitrage

🔸Duration: < 30 hours
🔸Delta-neutral profit: $60+

Result:
- @pacifica_fi fees this week more than covered
- Pacifica points effectively free

The opportunity lasted less than ~30 hours before the funding normalized, so I closed the position after collecting the payments.

Between funding and combinator rebates, the trade generated more than $60, which more than offsets the trading fees I likely paid on Pacifica during the week.

> The key takeaway

These inefficiencies can appear for short periods of time. If you monitor the market closely, opportunities like this can significantly reduce trading costs.

This is especially interesting with RWA assets, where derivatives can keep trading while the underlying markets are closed, sometimes creating temporary funding dislocations.

Opportunity appears
Position opened
Funding collected
Trade closed

Now back to scanning the market for the next one.

Sunday Funding Rate Arbitrage Opportunity

$NVDA is currently showing ~400% APR in funding rate arbitrage.

I spotted it last night using @LorisTools and the spread is still there.

The play is simple:
- Long on Pacifica
- Short on Lighter

If you want to keep it simple, the easiest way to run this delta-neutral strategy is using TWAP orders.

Just set the size and the running time, both Pacifica and Lighter will execute small periodic trades during that window. Because the orders are sliced into tiny chunks, the impact from spread is minimal, and fees are quickly offset thanks to the high APR.

As shown in the screenshot, with a ~$5,000 position I made over $20 in funding in just 12 hours.

⚠️ Important: monitor the funding rates closely, they can change quickly and the opportunity can disappear.

For additional risk management, I opened the Lighter position in isolated margin and added extra collateral to push the liquidation price further away.

NVDA Earnings this week will lead to new Volume ATH for HIP 3 Markets. https://t.co/QgJuWqiVn0