Paragon vs Variational Funding Arbitrage
5 shared markets · net of estimated fees · updated every few minutesParagon and Variational both quote 5 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 right now is CIEN — long Paragon / short Variational at 81.2% net APR — but the median across all shared markets is 26.4%, which is the number worth planning around.
The long leg is whichever venue prices funding lower for that market. It is a property of the MARKET, not of the exchange, and it flips as rates move: here 2 markets go long on Paragon and 3 on Variational. 4 markets clear 5% net APR, 4 clear 10%.
Spreads by market
top 5 of 5 by net APR| Market | Long | Short | Net APR | Gross | 7d avg | Thin leg vol |
|---|---|---|---|---|---|---|
| CIEN | Paragon | Variational | 81.2% | 90.3% | -4.9% | $43K |
| RDDT | Variational | Paragon | 51.9% | 59.7% | — | $89K |
| TTWO | Paragon | Variational | 26.4% | 35.7% | -21.9% | $17K |
| IREN | Variational | Paragon | 20.7% | 25.3% | +4.6% | $106K |
| SMCI | Variational | Paragon | 4.5% | 13.4% | +23.9% | $33K |
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.
Coverage note: Paragon and Variational share 5 markets, 0 of them with real depth — below the 10 markets / 5 liquid this page treats as full coverage, so this is a thin sample rather than a picture of the pair.
Paragon vs Variational — FAQ
How many markets can you arbitrage between Paragon and Variational?
5 perpetual markets are quoted on both Paragon and Variational right now. 4 of them show a net spread of at least 5% APR after estimated fees, and 0 have at least $1M of 24h volume on the smaller leg.
What is the best Paragon / Variational funding spread right now?
CIEN: long Paragon and short Variational for about 81.2% net APR after estimated fees. The median across all 5 shared markets is 26.4%, so the top of the list is not typical.
Which side pays on the Paragon / Variational pair?
It varies by market: Paragon is the long (funding-receiving) leg in 2 of the shared markets and Variational in the other 3. The direction is set per market by which venue currently prices funding lower.
Trading the Paragon / 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. 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. Venue detail: Paragon funding rates · Variational funding rates; the full calculation is in the methodology.