GMX Funding Rate Farming

Delta-Neutral GMX Funding Rate Farming capitalizes on the unique dynamics of funding rates in perpetual contracts. Funding rates ensure alignment between futures and spot prices, allowing traders to leverage without directional exposure.

Unlocking Yield Through Funding Rate Farming

Funding rate farming takes advantage of skewed open interest on perpetual DEXs, allowing traders to earn consistent yield without assuming directional risk. By strategically leveraging funding rates, traders can optimize their returns within the DeFi landscape.

The Mechanics of GMX Funding Rate Farming

On GMX, GoldLink borrowers have the opportunity to farm funding rates by deploying short positions when long open interest surpasses short open interest. Leveraging GoldLink's borrowing capabilities, borrowers can access additional capital from the lending pool to deploy short positions, fully collateralized by spot positions in the same market. This innovative approach effectively mitigates directional exposure while maximizing yield potential.