Durable Funding Strategies: How to Earn Yield + XP Without Trading

The Problem with Short-Term Strategies

If you're new to funding arbitrage, check out our beginner's guide first. Already familiar? Let's talk about durability.

Most funding arbitrage opportunities are fleeting. A pair might show 50% APR today, but flip negative tomorrow. Constantly monitoring and adjusting positions is:

• Time-consuming - requires constant attention
• Expensive - trading fees eat into profits
• Stressful - you're always reacting

What if you could find positions that stay profitable for months while earning XP passively?

Introducing Durable Strategies

A durable funding strategy has these characteristics:

1. Consistent funding spread between exchanges (doesn't flip often)
2. Sufficient liquidity to maintain positions long-term
3. XP/rewards accumulation just for holding
4. Low maintenance - check once a week, not every hour

Real Case Study: TIA (Celestia)

Let's look at a concrete example that has been running successfully since September 2024.

The Setup

Why This Works

Paradex consistently has more negative or less positive funding than Hyperliquid for TIA. This means:

• When you go long on Paradex, you receive funding (or pay less)
• When you go short on Hyperliquid, you receive funding
• The net result is positive funding income

Performance Over 3+ Months

Since September 2024, this position has:

• Never flipped negative for more than a few hours
• Maintained an average spread of 8-15% APR
• Required zero adjustments after initial setup
• Generated consistent daily income

The XP Bonus: 250 XP Daily for $0 Volume

Here's where it gets truly powerful. Paradex's XP program rewards you for:

1. Trading volume - earned when entering/exiting
2. Open interest - earned every day just for holding positions

With a $10,000 position on Paradex, you earn approximately:

You're not trading. You're not generating volume. You're simply holding a hedged position and earning XP every single day.

Why XP Matters

Paradex XP is expected to convert into:

• Trading fee discounts
• Governance rights
• Potential token airdrops

By running a durable funding strategy, you're:

1. Earning yield from funding
2. Accumulating XP for future rewards
3. Zero directional risk from the hedge

How to Find Durable Strategies

Step 1: Use Historical Data

On FundingView's Strategy page, set the timeframe to 90 days or 180 days. Look for pairs where:

• The spread is consistently positive
• The average APR is above 10%
• Neither exchange dominates (both contribute to the spread)

Step 2: Check Funding Stability

Use the History Explorer to visualize funding rate history. Ideal pairs show:

• Minimal crossovers (where the rate flips)
• Consistent spread even during volatility
• No sudden spikes that normalize quickly

Step 3: Verify Liquidity

Ensure both exchanges have:

• $1M+ open interest on the pair
• Reasonable spreads in the order book
• No history of delistings or liquidity issues

Step 4: Calculate Break-Even

Factor in all costs:

• Entry fees (both positions)
• Potential slippage
• Expected funding income

If your break-even is under 1 week, the strategy is viable.

Other Durable Pairs to Watch

While TIA/Paradex/Hyperliquid is our star example, FundingView helps you find similar setups:

Characteristics of Good Pairs

Exchanges with XP Programs

• Paradex - OI-based XP (our favorite for durability). Read our full Paradex Review
• Hyperliquid - Points for all activity
• Lighter - Trading rewards
• Aster - Emerging rewards program

See all exchange offers on our Perp DEX Offers page.

Risk Management for Long-Term Positions

Monitor Weekly, Not Daily

Check your positions once a week for:

• Funding rate changes
• Liquidation buffer
• XP accumulation

Set Alerts

Use FundingView (coming soon) or exchange tools to alert you when:

• Funding spread drops below 5%
• Funding flips negative
• Liquidation price approaches

Keep Reserve Capital

Always maintain extra collateral on the exchange with the short position. Unexpected volatility can require top-ups.

Know Your Exit

Plan your exit criteria in advance:

• Close if spread drops below X%
• Close if funding is negative for Y days
• Close when airdrop/XP program ends

The Math: Why Durability Beats High APR

Consider two strategies:

Strategy A: High APR, Unstable

• 50% APR for 2 weeks
• Flips negative, you close
• Net result: ~1.9% gain minus fees

Strategy B: Moderate APR, Durable

• 12% APR for 3 months
• Still running
• Net result: ~3% gain + massive XP

Strategy B wins because:

• Lower trading costs (fewer entries/exits)
• Compound XP accumulation
• Less time spent managing

Getting Started

1. Visit FundingView Strategy - Filter for 90+ day timeframes
2. Research the pairs - Check history and verify stability
3. Start small - Test with $1,000-5,000 first
4. Scale up - Once comfortable, increase position size
5. Stack XP - Choose exchanges with active reward programs

"The best funding arbitrage position is one you can forget about for months while it generates yield and XP."

Conclusion

Durable funding strategies represent the evolution of funding arbitrage. Instead of chasing the highest rates, you're optimizing for:

• Consistency over peak performance
• Passive income over active trading
• XP accumulation as a bonus yield layer

The TIA example shows what's possible: 3+ months of stable yield plus 250 XP daily, all from a simple hedged position.

Use FundingView's historical data to find your own durable strategies, and start earning while you sleep.

Past performance does not guarantee future results. Always monitor your positions and manage risk appropriately.

Related Articles

• Paradex Review 2025 - Deep dive into our favorite XP exchange
• Is Funding Arbitrage Safe? - All risks explained
• Spot/Perp Funding Arbitrage - Alternative strategy
• Earn Your First $100 - Beginner's guide
• What is FundingView? - Platform overview