The Funding Carry — Cash-and-Carry
// Direction cancels harder than the delta-neutral LP: no pool, no impermanent loss, the carry is the whole trade. And when funding goes negative, the same structure runs backwards — holders pay.
Long the asset in spot, short the perp at equal size, and collect funding while the two prices track. No pool and no impermanent loss — the carry is the trade.
// WHAT IT IS
- Long the asset in spot · short the perp at equal size · collect funding while the two prices track.
- Direction cancels harder than the delta-neutral LP — no pool, no impermanent loss; the carry IS the trade.
- SPOT CARRY is the surface for exactly this read — both legs of the idea on one board.
The version with a pool on the long leg — and impermanent loss with it.
// WHEN PEOPLE RUN IT
- When funding is rich and they want the rate, not the direction. The trend read still frames the risk mood around the position.
The trend check that frames the risk mood around any carry.
// THE WALKTHROUGH
1. SPOT CARRY — the carry read, one surface.
2. Where funding pays best.
3. The honest row: funding is signed for a reason.
// WHAT CAN GO WRONG
- The carry inverts — the SOL row above is live glass, not a hypothetical.
- Two venues, two legs — execution and collateral live in different places; moving size between them isn't instant.
- The basis moves — "the two prices track" is the assumption; the BASIS WARNING class of risk is why it's an assumption, not a law.
- Staleness — chips carrying ~ (e.g. ~ MARKET CLOSED) mean the number on screen is not a number you can currently act on.
// THE MATH BOX
Equal legs $10,000 · funding +745.52% APR → the carry earns ≈$204 per day while positive; the SOL row shows the same math running backwards.
Example — rates change constantly. That headline rate is a thin-book row: the same plate carries its OI, and size does not fit where the book is thin.
