Solana Funding Rate Arbitrage

Solana Funding Rate Arbitrage (v2.0)

Automated funding rate arbitrage bot for Solana perpetual DEXes.

🔥 What's New in v2.0

Auto-Trading: Fully automated position management Multi-DEX Support: Drift Protocol + Flash Trade Position Manager: Track PnL and funding collected Risk Management: Stop-loss, max DD, auto-rebalancing Cron Integration: Scheduled rate checks

Supported DEXes

DEXMarketsTradingData SourceDrift Protocol64✅ FullDirect APIFlash Trade19🔶 DRY_RUNCoinGecko

Strategy Options

StrategyLeverageWin RateAPYMax DrawdownUltra Safe1x96%126%2%Conservative1.5x89%203%4%Moderate2.5x85%411%9%

Quick Start

cd scripts && npm install # 1. Scan funding rates (no trading) npm run trade:scan # 2. Check position status npm run trade:status # 3. Run in DRY_RUN mode (simulated) npm run trade:dry # 4. Run live trading (requires wallet) npm run trade # Other commands npm run scan # Basic rate scanner npm run dashboard # Web dashboard (:3456) npm run monte-carlo # Risk simulations

Configuration

Config file: ~/.secrets/funding-arb-config.json { "strategy": "ultra_safe", "max_position_pct": 50, "min_spread": 0.5, "max_dd_pct": 2, "auto_execute": true, "dry_run": true, "leverage": 1, "check_interval_hours": 4, "min_apy_threshold": 100, "max_position_usd": 100, "notification": { "telegram": true, "on_open": true, "on_close": true, "on_funding": true }, "risk": { "max_positions": 2, "stop_loss_pct": 2, "take_profit_pct": null, "auto_rebalance": true, "rebalance_threshold": 0.3 } }

Environment Variables

Create .env in scripts directory or ~/.secrets/.env: # Required for live trading SOLANA_PRIVATE_KEY=[1,2,3,...] # Or use wallet file SOLANA_WALLET_PATH=/path/to/wallet.json # Optional SOLANA_RPC_URL=https://mainnet.helius-rpc.com/?api-key=YOUR_KEY DEBUG=true # Verbose logging

Cron Setup

Run every 4 hours: # Add to crontab -e 0 */4 * * * ~/clawd/skills/solana-funding-arb/scripts/cron-runner.sh

How It Works

Scan: Compare funding rates on Drift vs Flash Trade Identify: Find pairs where one is paying and other is receiving Execute: Go LONG on exchange with negative rate (receive funding) Go SHORT on exchange with positive rate (receive funding) Collect: Delta-neutral = collect funding from both sides Rebalance: Close when spread reverses or DD exceeded

Example Trade

• SOL Funding Rates:
• Drift: -500% APY (longs receive)
• Flash: +800% APY (shorts receive)
• Spread: 1300% APY
• Action:
• → LONG $50 SOL on Drift (receive 500% APY)
• → SHORT $50 SOL on Flash (receive 800% APY)
• → Net: Delta-neutral, collecting ~1300% APY in funding

Files

scripts/ ├── src/trading/ │ ├── auto-trader.ts # Main trading logic │ ├── drift-client.ts # Drift Protocol integration │ ├── flash-client.ts # Flash Trade integration │ └── position-manager.ts # Position tracking ├── cron-runner.sh # Cron wrapper script └── ... ~/.clawd/funding-arb/ ├── positions.json # Current positions ├── history.json # Trade history ├── trader-state.json # Bot state └── logs/ # Cron logs

Risks

⚠️ Smart Contract Risk: DEX bugs, hacks ⚠️ Rate Reversal: 15-18% daily probability ⚠️ Execution Slippage: 0.2-0.4% ⚠️ Liquidation: Only with leverage >1x

Yield Comparison

PlatformAPYvs Ultra SafeUltra Safe (1x)126%—US Bank (FDIC)4.5%28x lessAave V32.5%50x lessMarginfi8.5%15x less

Testing

Start with dry_run: true (default) Run npm run trade:scan to verify opportunities Run npm run trade:dry to test execution flow When ready, set dry_run: false and max_position_usd: 10 Monitor logs at ~/.clawd/funding-arb/logs/

References

Drift Protocol Docs Flash Trade API Reference