2 Week test DNFRA AROI %67.78 and Funding Rate of 2835% APY

27d (edited) • Strategy

🧵 DEX-Only Delta Neutral Arbitrage: 2-Week Test Results

Just completed a 2-week UNMANAGED test of delta neutral funding rate arbitrage with $400 total using only DEXs. No CEX custody risk. No KYC. Pure DeFi. Here's what happened: 🔍

Overall Returns

Total Profit: +$16.28 (unrealized + funding)
Total Capital Deployed: $643.66
2-Week ROI: +2.53%
Annualized ROI: +65.78%
Net Funding APY: +2,835% (if rates sustained)

The Setup: 🎯

Research Tool: Loris.tools

Premier funding rate scanner covering 25+ exchanges
Real-time DEX rate monitoring (Hyperliquid + Variational)
Filters for CEX/DEX selection
Updates every minute for opportunity detection

Strategy: DEX-only delta neutral Token: DOOD (Doodles ecosystem token) Size: 62.5K tokens per side Duration: 14 days, ZERO rebalancing Platforms:

Long on Variational (8hr funding)
Short on Hyperliquid (1hr funding)

Why DEX-Only?

✅ Non-custodial (your keys, your crypto)

✅ No KYC required

✅ Zero counterparty risk

✅ Permissionless 24/7 access

✅ No FTX-style rug risk

The Results: 💰

✅ Net P&L: +$16.28 (+2.53% in 14 days)

✅ Funding Income: +$10.90 net

✅ Divergence Loss: Only 0.84%

✅ Annualized ROI: +65.78%

✅ Net Funding APY: +2,835% (if sustained)

Breakdown:

📈 Variational (Long):

P&L: +$108.69
Funding received: +$17.32
Earning +13.44% daily funding

📉 Hyperliquid (Short):

P&L: -$103.31
Funding paid: -$6.42
Paying -5.67% daily funding

Net Delta Exposure: Only $5.38 (nearly perfect hedge)

Why DOOD? 🎨

Doodles isn't just an NFT project—it's a community-driven ecosystem with tens of thousands of active supporters who create, collect, and shape culture. The DOOD token represents participation in this growing ecosystem.

Personal conviction + available liquidity on both DEXs = perfect test candidate.

What Makes This Unique:

🔥 ZERO rebalancing for 2 weeks

Position held through funding rate cycles
No emergency adjustments needed
Proves strategy resilience
Minimal maintenance = scalable approach

🔥 DEX-native execution

Funding arbitrage WITHOUT CEX custody risk
All positions remain in your control
Smart contract risk only (no exchange failure risk)

🔥 Loris.tools integration

DEX filter made research effortless
Real-time rate monitoring
Identified Hyperliquid/Variational spread opportunity
Essential tool for cross-platform arbitrage

Key Learnings:

1️⃣ DEX funding arbitrage is viable and profitable - You don't need CEX exposure to capture funding rate spreads

2️⃣ Set-and-forget can work - 14 days unmanaged, still profitable. Position sizing and initial execution matter more than constant tweaking.

3️⃣ Research tools are critical - Loris.tools DEX filtering was game-changing for identifying opportunities across decentralized platforms

4️⃣ Delta neutral ≠ zero profit - Market neutral means zero directional risk, NOT zero returns. Funding arbitrage provides alpha.

5️⃣ Community matters - Chose DOOD because I believe in the project. Conviction + strategy = sustainable approach.

Risk Management:

✅ Isolated margin on one side

✅ Conservative leverage (3x max)

✅ DEX-only = no custodial risk

✅ Position monitoring via Loris.tools

✅ Smart contract risk acknowledged and accepted

Next Steps:

Testing larger position sizes, exploring additional DEX pairs on Loris.tools, monitoring funding rate cycles for optimal entry, considering multi-asset delta neutral portfolios.

Tools Used:

Loris.tools for funding rate research and monitoring
Hyperliquid DEX for short exposure
Variational DEX for long exposure
DOOD token from Doodles ecosystem
This is what modern DeFi arbitrage looks like. Non-custodial, permissionless, and profitable.

Questions about DEX funding arbitrage, Loris.tools, or the strategy? Drop them below. 👇

Not financial advice. Educational content showing real test results. DYOR. DEX trading involves smart contract risk.

#CryptoTrading #DeFi #DeltaNeutral #FundingRates #Hyperliquid #DEX #CryptoArbitrage #DOOD #Doodles #LorisTool #QuantTrading #DeFiTrading

Strategic Recommendations

For Continuing This Strategy

✅ Maintain DEX-only approach - Proven profitable without CEX risk

✅ Use Loris.tools actively - Continue monitoring for rate changes

✅ Consider rebalancing schedule - While 2 weeks worked, monthly rebalancing may optimize

✅ Scale gradually - Test larger sizes with same methodology

✅ Document funding cycles - Build database of rate patterns

For Future Tests

📊 Multi-asset expansion - Test other tokens with DEX availability 📊 Different DEX combinations - Explore Extended, Drift, Vest rates via Loris.tools 📊 Shorter duration tests - Weekly rebalancing comparison 📊 Leverage optimization - Test different leverage ratios for efficiency

Final Verdict

🏆 This 2-week unmanaged test proves DEX-only delta neutral funding arbitrage is both viable and profitable.

Key Success Metrics:

✅ Positive returns (+2.53% in 14 days)
✅ True delta neutrality achieved (0.84% divergence)
✅ Net positive funding (+$10.90)
✅ Zero rebalancing needed
✅ No custodial risk exposure
✅ Strategy validated for scaling

Loris.tools Value: Essential for DEX funding rate discovery and monitoring. The DEX filtering capability enabled this entire strategy by making cross-platform rate comparison effortless.

DOOD Token Selection: Community-driven project with sufficient DEX liquidity proved ideal for testing. Personal conviction + strategy alignment = sustainable approach.

Recommendation: Continue strategy with potential position size increase. Consider monthly rebalancing schedule for optimization. Monitor funding rate cycles via Loris.tools for timing improvements.

NFA

DYOR

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