Lighter vs Variational Funding Arbitrage
65 shared markets · net of estimated fees · updated every few minutes
Lighter and Variational both quote 65 of the same perpetual markets, so a delta-neutral position can be split across the two and collect the difference in their funding. The widest spread on a market with real depth is CASHCAT — long Variational / short Lighter at 171.6% net APR — but the median across all shared markets is 3.8%, which is the number worth planning around.
Lighter / Variational spreads by market
top 25 by net APR| Market | Long | Short | Gross APR | Net APR | 7d avg | 24h vol · lower leg |
|---|---|---|---|---|---|---|
| CASHCAT | Variational | Lighter | 174.8% | 171.6% | +64.7% | $1.2M |
| ZORA | Variational | Lighter | 142.9% | 138.3% | -5.1% | $122K |
| USELESS | Lighter | Variational | 66.9% | 64.4% | +0.6% | $2.4M |
| S | Variational | Lighter | 58.2% | 54.3% | +15.6% | $34K |
| ETHFI | Variational | Lighter | 34.6% | 32.1% | +6.8% | $190K |
| HBAR | Variational | Lighter | 34.1% | 32.0% | -2.0% | $91K |
| APT | Variational | Lighter | 32.0% | 29.2% | -4.3% | $138K |
| SPX | Variational | Lighter | 25.2% | 20.5% | +12.2% | $124K |
| STRK | Variational | Lighter | 23.2% | 19.6% | +48.8% | $199K |
| LTC | Variational | Lighter | 20.6% | 18.5% | +9.4% | $119K |
| BNB | Variational | Lighter | 19.7% | 17.9% | +7.0% | $3.2M |
| TRX | Variational | Lighter | 17.1% | 14.9% | +0.5% | $43K |
| AAVE | Variational | Lighter | 16.8% | 14.6% | +13.3% | $220K |
| POPCAT | Variational | Lighter | 17.4% | 14.0% | +1.2% | $119K |
| WLFI | Lighter | Variational | 16.6% | 13.6% | -11.6% | $13K |
| DASH | Variational | Lighter | 16.0% | 13.5% | +1.7% | $706K |
| VVV | Lighter | Variational | 15.8% | 13.3% | -4.6% | $582K |
| GRASS | Variational | Lighter | 15.3% | 12.3% | +13.4% | $26K |
| XRP | Variational | Lighter | 13.8% | 12.2% | +4.0% | $3.5M |
| ARB | Variational | Lighter | 15.8% | 12.0% | +5.0% | $449K |
| 1000BONK | Variational | Lighter | 15.1% | 11.9% | +2.7% | $200K |
| PENGU | Variational | Lighter | 14.0% | 11.0% | +25.7% | $242K |
| XMR | Lighter | Variational | 12.8% | 10.6% | +35.5% | $1.1M |
| FARTCOIN | Variational | Lighter | 10.9% | 8.4% | -12.6% | $542K |
| BTC | Variational | Lighter | 8.7% | 7.9% | +1.7% | $257.7M |
Net APR subtracts entry and exit fees, both legs' bid/ask spread and estimated slippage from the gross funding spread. The 7-day average is historical gross funding for the same pair: a current rate close to it suggests the spread has persisted, one far above it is usually a spike that will decay.
Which venue is the long leg
The long leg is whichever venue currently prices funding lower for that market — it is a property of the market, not of the exchange, and it flips as rates move.
Lighter vs Variational — FAQ
How many markets can you arbitrage between Lighter and Variational?
65 perpetual markets are quoted on both Lighter and Variational right now. 31 of them show a net spread of at least 5% APR after estimated fees, and 14 have at least $1M of 24h volume on the smaller leg.
What is the best Lighter / Variational funding spread right now?
CASHCAT: long Variational and short Lighter for about 171.6% net APR after estimated fees, counting only markets with at least $1M of 24h volume on the smaller leg. The median across all 65 shared markets is 3.8%, so the top of the list is not typical.
Which side pays on the Lighter / Variational pair?
It varies by market: Lighter is the long (funding-receiving) leg in 4 of the shared markets and Variational in the other 61. The direction is set per market by which venue currently prices funding lower.
Trading the Lighter / Variational spread
The trade is one position split across two venues: long the exchange paying the more negative funding, short the one paying the more positive, in the same size. Direction risk is largely offset, and the position earns the funding difference each interval. What limits it is not the headline APR but the smaller leg's liquidity, the fees on both sides, and how long the spread survives — funding decays and flips, often within hours. Per-market detail, including a backtest, is on each market's funding page; the full calculation is in the methodology.
Venue detail: Lighter funding rates · Variational funding rates