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MAX LRT Strategies
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Learn more: YieldNest Community DeFi Strategy Hunt: Unleash Your Inner Yield Hacker! 🕵️‍♂️ | by YieldNest | Mar, 2025 | Medium

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Farm Funding Fees discrepancies Hyperliquid/OxFun + Aerodrome OX/ETH or OX/USDC pool

  1. Deposit ynETHx or ynUSDx on Ox.Fun to use as collateral for perps. ETH or USDC on OxFUN; 0.95 LTV

  2. Deposit USDC on Hyperliquid to use as collateral for perps

  3. Farm Funding Fees delta neutral:

Example funding fee difference for 8-hours:

XRP Perps: OxFUN = -0.0928% HL = 0.0023%; HL-OX difference = 0.0905% 8H, Yearly: 99% APR

Long XRP on OxFUN, Short XRP on HL for 99% APR. Monitor every 8 hours for rate discrepancies

  1. Every 8 or 24 hours monitor pairs, make changes for better rate discrepancies and to

sell accrued OX to pay funding fees on HL

  1. After funding fees paid to HL, sell 50% accrued OX for ETH or USDC and deposit OX/ETH or OX/USDC into Aerodrome pool. Normally, one of these pools range from 80-100+% APR.

  2. Every 24-hours sell AERO rewards for ETH or USDC

  3. Deposit ETH or USDC into ynETHx or ynUSDx

  4. Keep adding to the Aerodrome pool with upside and dowside targets to eventually liquidate OX for either ETH or USDC to be funneled back into ynETHx or ynUSDx

  5. This strategy will also accrue volume on HL which will later be rewarded with HL season 2. May or may not be a significant airdrop. Liquidate airdrop into ynETHx or ynUSDx

Risk Assessment:

  • OxFun is a hybrid CEX/DEX exchange, with proof of assets onchain. They will be rebranding as mentioned in recent X spaces. New roadmap to be released soon.
  • OxFUN is a project of former controversial 3AC managers Su Zhu and Kyle Davies. I’ve been using the platform over 1 year without any major issues.
  • OxFUN will be cooperating with Hyperliquid to thicken liquidity on Ox.FUN which should increase trading volume, provide tighter spreads for reduced slippage
  • This strategy should be actively managed at least every 8-hours
  • Sufficient capital will be needed as collateral as buffer for fees/margin requirements
  • This strategy should have OX price targets to downside to liquidate all OX within OX/USDC or OX/ETH pools to the respective native asset.
  • This strategy should have OX price targets to the upside to reevaluate, either to liquidate OX for native asset to capture profits or continue.
  • The high APR of Aerodrome pools are dependent on the amount of LPs and the trading volume on OX.FUN, as 17.5% of trading fees go to incentivize the pools. Monitor flywheel momentum.

*ynETHx and ynUSDx will need to be accepted as collateral assets on Ox.FUN. This shouldn’t be a problem.

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Love this kind of thinking—super creative, sharp execution logic, and a great example of tying ecosystem incentives back into the YieldNest flywheel.

What’s working well:

  • Leveraging funding fee discrepancies between HL and OxFUN is clever—real alpha if managed well.
  • Recycling OX emissions into Aerodrome LPs + looping rewards back into ynETHx/ynUSDx creates a compounding flywheel.
  • Potential HL season 2 airdrop farming is a nice bonus layer.
  • Big props for incorporating risk flags transparently—shows maturity.

What to watch:

  • Strategy’s viability is tightly coupled to funding rate spreads and OX liquidity—could decay fast if arbs compress.
  • Manual rebalancing every 8–24h is demanding and needs automation to scale safely.
  • Relying on platforms like OxFUN (Su + Kyle) introduces reputational and counterparty risk—worth flagging for more conservative users.
  • OX token price targets and LP exit conditions need clear thresholds and circuit breakers to avoid drawdown spirals.

We’ll keep this on the radar as an advanced vault candidate, especially once automation and monitoring systems are ready. Appreciate the depth—this is the type of strategic exploration we love seeing from the community.

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