Spot-Perp Arbitrage on Hyperliquid: How to Earn Passive Yield
8/13/2025
Earn Passive Yield Without Moving Funds Between Exchanges
Most traders think crypto arbitrage means moving funds between platforms, paying withdrawal fees, and dealing with delays. But with Hyperliquid’s spot-perp arbitrage strategy, you can stay delta-neutral and collect funding rate payments — all on a single exchange.
In this guide, you’ll learn:
- How spot-perp arbitrage works step-by-step
- Why Hyperliquid is perfect for this strategy
- The risks you need to manage
- How to use Smartbitrage tools to find the most profitable opportunities in seconds
What Is Spot-Perp Arbitrage?
Spot-perp arbitrage takes advantage of positive funding rates in the perpetual futures market while offsetting price risk with a matching spot position.
Here’s how it works:
- Buy the asset on the spot market (long position)
- Short the same asset in the perpetual futures market
- Keep both positions the same size (delta-neutral)
- Collect funding payments from the perp short position
You’re not betting on price direction — you’re earning yield from funding rates.
Real-World Example: Spot-Perp Arbitrage on Hyperliquid
Imagine $SOL perpetual futures on Hyperliquid have a +0.002% hourly funding rate (shorts get paid).
If you:
- Go long $SOL in the spot market
- Go short $SOL in the perpetual market
Then every hour:
- Your short perp earns 0.002% (paid by perp longs)
- Your spot position offsets any price movements, keeping you market-neutral
Over weeks or months, these payments can stack up into a steady yield stream — which can be multiplied using leverage on the perp leg.
Why Use Hyperliquid for Spot-Perp Arbitrage?
Hyperliquid offers a unique environment that makes this strategy more efficient and less risky:
- Deep liquidity in both spot and perpetual markets
- Competitive funding rate structures
- Low trading fees and fast execution
- No need for cross-exchange transfers (avoids delays, fees, and execution lag)
By keeping both legs on the same platform, you reduce operational complexity and maximize net returns.
Risks You Need to Manage
Even with a delta-neutral setup, spot-perp arbitrage isn’t risk-free:
- Funding rate flips — positive rates can turn negative, turning income into cost
- Execution slippage — entering at different prices can create small losses
- Leverage liquidation risk — using leverage on the perp short can expose you during sudden price spikes
- Low-liquidity assets — wide spreads and thin books can erode profits
Risk control is key to making this strategy consistently profitable.
How Smartbitrage Helps You Win
Tracking funding rates manually is time-consuming — and by the time you spot an opportunity, it might be gone.
That’s where Smartbitrage comes in.
Our platform gives you:
- Live funding rate data for every Hyperliquid asset
- Historical performance to identify consistent yield generators
- Estimated APR based on your preferred leverage settings
We even have a dedicated Spot-Perp Strategy page where you can instantly see which tokens are eligible for this strategy and the real returns they’ve been generating — adjusted to your desired leverage.
🔍 View the Spot-Perp Strategy page →
By acting faster and with better data, you can capture the most profitable opportunities before the rates change.
Final Thoughts: A Low-Risk Yield Strategy for Active Traders
Spot-perp arbitrage on Hyperliquid is one of the cleanest, most accessible ways to earn passive yield without taking big market bets.
By pairing precise execution with Smartbitrage’s real-time tools, you can transform funding rate payments into a steady, reliable income stream.