The broader crypto market is seeing a slight pullback after the weekend run-up, seemingly weighed down by traditional markets, with major equity indices down on the day. Nonetheless, AXS, LUNA, and DYDX were among today’s top gainers. AXS and LUNA hit fresh ATHs today following the implementation of AXS Staking and Terra’s Colombus-5 Upgrade last week.
AXS Arbitrage? AXS Ranges High on Negative Funding Rates
Axie has been the star performer in crypto over the weekend due to the release of AXS staking on Friday. AXS is up +117% over the past 7 days.
AXS staking opened up opportunities for yield arbitrage via perpetual futures. This can be done by simultaneously buying spot AXS to stake, while shorting the AXS-perpetual future. The trade is delta-neutral — meaning there’s no price risk — and captures the difference.
However, the yield from this is somewhat muted relative to normal because funding rates for AXS perpe