YZY 176% Annualized: Top Funding Arbitrage April 19 2026

Crypto markets are flashing signs of intense bearish pressure today, with the total market capitalization dropping 2.2% to $2.64 trillion and BTC dominance holding steady at 57.4%. While spot traders are navigating a red landscape, the perpetual futures market is offering historic opportunities for yield generation. Extreme funding rate disparities have emerged across major perp DEXs, creating lucrative setups for funding rate arbitrage and carry trades. When short sellers overcrowd a perp market, they must pay a premium to borrow the asset, resulting in deeply negative funding rates. For traders holding the underlying spot asset, this presents a chance to short the perp and collect that premium, effectively turning market volatility into a stable yield stream. Let's break down the top opportunities available right now.

The YZY Short Carry Trade

The most explosive opportunity on the board today is YZY, currently trading at a mark price of $0.30 with a staggering negative funding rate of -0.1609% per 8 hours. Annualized, this comes out to a massive -176.16%. This extreme rate indicates that shorts are heavily leveraged and desperate to maintain their positions, paying an enormous premium to do so. Traders can execute a classic carry trade here by buying YZY spot and shorting an equal amount on the YZY perpetual contract. By delta-hedging their exposure, traders remain market-neutral while collecting that 176% annualized yield from the shorts. However, yields this extreme rarely last, as the high cost forces shorts to cover or get liquidated, so timing and active monitoring are essential to capture the bulk of this payout.

Mid-Cap Arbitrage: COMP and FET

For traders seeking carry trades with deeper liquidity and potentially lower slippage, COMP and FET present compelling alternatives. COMP is currently yielding an annualized -75.62% for shorts at a mark price of $26.39, translating to -0.0691% every 8 hours. FET is similarly skewed to the short side, with a funding rate of -0.0397% per 8 hours (-43.44% annualized) and a mark price of $0.22. These mid-cap assets often attract institutional-grade short sellers during market downturns, driving funding rates deeply negative. Setting up a spot-and-perp hedge on these assets allows traders to capture robust double-digit yields with generally lower execution risk compared to low-cap meme assets. The key is ensuring the spot liquidity is sufficient to match the perp position without excessive market impact.

Long Funding Plays: MAVIA and BIO

While negative rates dominate the short carry narrative, positive funding rates offer a different mechanism for yield, especially for traders who are already long and looking to offset costs. MAVIA leads the positive side with a rate of 0.0689% per 8 hours, or 75.48% annualized, at a mark price of $0.04. BIO follows closely at 0.0617% per 8 hours (67.56% annualized) with a mark price of $0.03. Longs on these perps are being handsomely rewarded, meaning a trader holding a long BIO or MAVIA position is getting paid to hold their directional bet. Alternatively, aggressive arbitrageurs can reverse the carry trade by shorting the spot asset and longing the perp, though finding borrow availability for these specific low-cap spot assets on lending protocols can be challenging.

Optimizing Execution Across Perp DEXs

Executing these strategies requires precision, as funding rates fluctuate rapidly and vary significantly across different venues. A rate that exists on Hyperliquid might not be available on Aster, or it might be slightly more favorable on Lighter or Backpack. This is where using a perp DEX aggregator becomes critical. By routing orders through Tangerine, traders can instantly compare funding rates across Hyperliquid, Aster, Lighter, Backpack, and other perp DEXs to ensure they are capturing the absolute highest yield for their short perp leg. Even a difference of a few basis points compounds massively when annualized at these levels. Tangerine streamlines the execution process, allowing you to lock in the carry trade at the optimal rate before the market corrects the imbalance.