I’ve been looking into this area recently, but I’m still a bit of a newbie, so I hope to learn from the pros. According to @午饭老师, the funding rate for CRCL on Binance is ridiculously high right now, so arbitraging the funding rate seems like a solid strategy. Since this is arbitrage, it should be a relatively low-risk approach. What I’m thinking is to buy $100,000 worth of CRCL stock through a broker, and then short $100,000 worth of CRCLUSDT at 1x leverage on Binance to capture the funding rate. This is probably the most basic method, but considering the risk of CRCL skyrocketing, I plan to add two extra steps. Step one is to buy OTM CALL options, like $150 strike price CRCL calls, and step two is to prepare 1.5x reserve funds on Binance to guard against extreme market movements. I’m thinking of buying 3 OTM CALL options, which should be enough. Here’s a formula for reference: For example, if I short $100,000 worth of CRCLUSDT and the funding rate is 0.5% every 8 hours: Three cycles per day would roughly be: $100,000 × 0.5% × 3 = $1,500/day If I plan to hold for 3 days, the theoretical funding fee would be: $1,500 × 3 = $4,500 But the total capital I need to leverage is around $280,000. After deducting the $1,500 cost of the OTM CALL options and some miscellaneous fees, the estimated profit is around $2,800, with an actual annualized return of about 100%. If it were me, I’d suggest that if you already hold a CRCL position, short-term arbitrage on the funding rate is worth considering. But if you don’t have a CRCL position, this kind of arbitrage might feel a bit tedious.