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

DEX	Markets	Trading	Data Source
Drift Protocol	64	✅ Full	Direct API
Flash Trade	19	🔶 DRY_RUN	CoinGecko

Strategy Options

Strategy	Leverage	Win Rate	APY	Max Drawdown
Ultra Safe	1x	96%	126%	2%
Conservative	1.5x	89%	203%	4%
Moderate	2.5x	85%	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

1. Scan: Compare funding rates on Drift vs Flash Trade
2. Identify: Find pairs where one is paying and other is receiving
3. Execute:
   • Go LONG on exchange with negative rate (receive funding)
   • Go SHORT on exchange with positive rate (receive funding)
4. Collect: Delta-neutral = collect funding from both sides
5. 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

Platform	APY	vs Ultra Safe
Ultra Safe (1x)	126%	—
US Bank (FDIC)	4.5%	28x less
Aave V3	2.5%	50x less
Marginfi	8.5%	15x less

Testing

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

References

• Drift Protocol Docs
• Flash Trade
• API Reference