SAGA 86.97% Annualised: Top Funding Rate Arbitrage May 10 2026

SAGA is the standout funding rate opportunity across perp DEXs today, printing an extraordinary 86.97% annualised rate on Hyperliquid. With a cluster of negative-funding assets also offering compelling short-basis trades and mid-yield positive rates providing diversified carry exposure, today's funding rate landscape is rich with arbitrage potential. Whether you are running delta-neutral carry trades on the highest-yielding perps or exploiting cross-exchange rate differentials between Hyperliquid, Binance, and Bybit, the current environment rewards disciplined execution and precise venue selection. Here is a full breakdown of the best funding rate arbitrage and carry trade setups for May 10, 2026.

SAGA Dominates: 86.97% Annualised Funding Rate Breakdown

SAGA is the undisputed king of perp DEX funding rates today, printing an extraordinary 0.0794% per 8 hours — equivalent to 86.97% annualised on Hyperliquid. At a mark price of just $0.02, SAGA's funding rate reflects extreme bullish positioning that shorts are subsidising heavily. For carry traders, this is the textbook setup: acquire SAGA spot or hold an equivalent linear exposure, then short the SAGA-PERP contract on Hyperliquid to collect the funding payment every eight hours. The annualised yield of nearly 87% vastly exceeds anything else on the board today and dwarfs yesterday's leader — as covered in ONDO 17.55% Annualised: Top Perp Funding Arbitrage May 9 2026, where ONDO peaked at roughly a fifth of SAGA's current rate.

The mechanics are straightforward but the economics are compelling. At 0.0794% per 8h, a $10,000 short position collects roughly $7.94 every eight hours, or $23.82 daily. Compounded over a year, that translates to the 86.97% headline figure. The critical question is sustainability — funding rates this elevated tend to attract arbitrage capital quickly, compressing the rate back toward equilibrium. Traders should monitor the 8-hour candles for signs of declining long interest. Hyperliquid's open interest in SAGA will be the tell: if OI starts dropping alongside the funding rate, the window is closing. For now, the 86.97% annualised rate represents one of the richest carry opportunities in crypto derivatives this week.

Negative Funding Shorts: BLAST, MEME, KAITO and EIGEN

While SAGA commands the positive-funding spotlight, four assets are paying shorts to hold positions — and the yields are significant. BLAST leads the negative-funding cohort at -0.0177% per 8 hours, annualising to -19.43%. MEME follows at -0.0138% per 8h (-15.06% annualised), with KAITO at -0.0078% per 8h (-8.5%) and EIGEN at -0.0072% per 8h (-7.91%). Negative funding means longs are paying shorts — so a delta-neutral short perp position (hedged with spot longs or a long on another exchange) collects the payment every eight hours.

BLAST's -19.43% annualised rate is particularly notable because it signals intense bearish pressure or crowded long liquidations. At a mark price of $0.00, BLAST is trading in micro-cent territory where funding dynamics can swing violently — a few large longs trying to catch a bottom can generate outsized negative rates. The carry trade here is the inverse of the SAGA setup: short BLAST-PERP on Hyperliquid while holding an equivalent long spot position (if liquid spot markets exist) or by going long on a CEX like Binance or Bybit where the funding rate may differ. This cross-exchange approach can capture both the negative-funding carry and any positive spread between venues.

MEME's -15.06% annualised operates on similar logic, though the deeper liquidity on Binance's MEME-USDT perp may offer tighter spreads for the hedge leg. KAITO and EIGEN, at -8.5% and -7.91% respectively, offer more moderate yields but potentially more stable funding patterns. KAITO's -0.0078% per 8h has been relatively consistent over recent sessions, making it a candidate for systematic short-basis strategies. EIGEN's negative rate may be tied to ongoing protocol developments affecting sentiment. Using Tangerine to compare the exact funding rates across Hyperliquid, Bybit, and Binance for each of these assets ensures you are capturing the maximum carry rather than leaving basis points on the table.

Mid-Yield Carry Trades: XMR, BIO, VVV, VINE and ZORA

Between the extremes of SAGA's 86.97% and BLAST's -19.43%, a cluster of mid-yield assets offers more sustainable carry trade setups. XMR stands out at 0.0167% per 8h (18.26% annualised) with a mark price of $414.45 — by far the most liquid asset in today's funding rate rankings. XMR's 18.26% annualised yield on a $414 underlying is particularly attractive for larger position sizes, as the deep liquidity across both perp DEX venues and CEXs like Binance and OKX minimises slippage on entry and exit. Privacy narratives continue to drive long interest in Monero, and unless regulatory catalysts shift sentiment, this funding premium may persist.

BIO at 0.0068% per 8h (7.47% annualised) and VVV at the same 0.0068% per 8h (7.4% annualised) offer steady positive carry with different risk profiles. VVV surged 21.4% in the last 24 hours, making it one of today's top gainers — the combination of price momentum and positive funding suggests genuine demand rather than purely speculative leverage. BIO's 7.47% is modest but consistent, suitable for traders building diversified carry portfolios. VINE at 0.0057% per 8h (6.28% annualised) and ZORA at 0.0056% per 8h (6.1% annualised) round out the positive-funding board. Both trade at penny-level mark prices ($0.02 and $0.01 respectively), which introduces execution risk — perp DEX order books may be thin, and adverse selection during volatile candles can erode the carry profit. For these micro-cap names, position sizing should reflect the wider bid-ask spreads and potential for rapid funding rate mean reversion.

Cross-Exchange Arbitrage: Hyperliquid vs Binance vs Bybit

The real edge in funding rate arbitrage lies not just in identifying high rates, but in exploiting the differences between exchanges. Hyperliquid may be showing SAGA at 86.97% annualised, but Binance and Bybit often price risk differently — their SAGA perp funding rate could be significantly lower, or even negative, creating a clean delta-neutral spread. The strategy is elegantly simple: short the asset on the exchange with the higher positive funding rate (Hyperliquid) while going long on the exchange with the lower rate (Binance, Bybit, or OKX). Both positions cancel out price exposure, and the trader pockets the funding rate differential every eight hours.

Consider XMR as a practical example. Hyperliquid quotes 18.26% annualised, but Binance's XMRUSDT perp might be showing 8% annualised, and Bybit somewhere in between. A trader short on Hyperliquid and long on Binance captures the spread — potentially 10% annualised with zero directional risk. The same logic applies to negative-funding assets: if BLAST is at -19.43% on Hyperliquid but only -5% on Bybit, going long on Hyperliquid (collecting the negative funding as a short pays you) while shorting on Bybit creates an asymmetric funding capture.

Execution considerations matter. Perp DEXs like Hyperliquid, Aster, Bluefin, and Vest operate on-chain with different settlement cadences and margin systems. CEXs like Binance and Bybit settle funding every eight hours as well, but the exact timestamps may not align — Hyperliquid settles at 00:00, 08:00, 16:00 UTC while Binance uses different windows. This timing mismatch can create brief periods of directional exposure. Additionally, cross-margin requirements differ: Hyperliquid uses cross-margined USDC vaults while Binance uses USDT-margined contracts. Traders must account for these structural differences when sizing positions. Using a perp DEX aggregator like Tangerine eliminates the manual comparison work — you can instantly see which exchange offers the best rate for each asset and identify where the widest spreads exist for cross-exchange arbitrage.

Market Context: VVV Rips 21.4% While BTC Dominance Holds

The broader crypto market provides the backdrop for today's funding rate landscape. Total market capitalisation sits at $2.78 trillion, up 0.6% in the last 24 hours, with Bitcoin dominance holding firm at 58.3%. This is a classic consolidation phase — BTC absorbing capital while altcoins rotate on individual catalysts. The modest green number masks significant divergence underneath: VVV exploded 21.4% today, SIREN added 14.0%, and CC gained 5.6%, while several other names bled slowly.

VVV's 21.4% rally makes it the standout gainer and explains its 7.4% annualised funding rate on Hyperliquid. Strong price action plus positive funding is a momentum signal — longs are willing to pay a premium to maintain exposure, suggesting the rally has legs beyond simple short squeezes. BIO also features in today's trending list alongside AURA, BILL, PENGU, WOJAK, and ONDO — the latter was yesterday's funding rate leader, and its presence in today's trend list suggests continued interest even as the headline rate has normalised.

For funding rate traders, the macro context matters because it determines which direction rates are likely to drift. In a market where BTC dominance is rising and total cap is flat, capital rotates from altcoins into Bitcoin — putting downward pressure on altcoin funding rates. This favours short-basis strategies on overextended long positions like SAGA at 86.97%. Conversely, when altcoin season resumes and BTC dominance drops, positive funding rates tend to expand as leverage returns to the long side. The current 58.3% Bitcoin dominance with a 0.6% market cap gain is ambiguous — not yet a breakout for alts, but not a flight to safety either. Carry traders should position accordingly, favouring shorter-duration funding captures on positive-rate assets while maintaining hedges.

Risk Management for Funding Rate Strategies

Funding rate arbitrage and carry trading are often described as market-neutral, but several risk vectors can erode or eliminate profits if unmanaged. The most common risk is funding rate mean reversion. SAGA's 86.97% annualised rate is extreme precisely because it is unsustainable — as more capital enters the carry trade (shorting SAGA perp), the funding rate compresses. If the rate drops to 10% annualised within 48 hours, entry timing matters enormously. Traders who entered at 86.97% and held through compression still profited, but those who entered late may have caught the tail end of the carry with insufficient yield to justify the operational complexity.

Liquidation risk on perp DEXs is another factor. Even delta-neutral positions carry maintenance margin requirements on both legs. If one exchange experiences a violent price wick that liquidates one side before the hedge can adjust, the position becomes directional at the worst possible moment. Hyperliquid's insurance fund and liquidation engine are robust, but smaller perp DEXs may have thinner liquidity in their liquidation cascades. Cross-exchange positions should account for the maximum expected drawdown on each leg and set appropriate stop-losses or auto-deleveraging thresholds.

Counterparty risk differs between venues. Perp DEXs operate via smart contracts — funds are non-custodial until settlement, reducing exchange risk but introducing smart contract risk. CEXs hold custody, exposing traders to potential withdrawal freezes or insolvency scenarios. Spreading capital across multiple venues mitigates single-point-of-failure risk. Finally, execution risk on micro-cap perps like SAGA ($0.02 mark), VINE ($0.02), and ZORA ($0.01) is substantial. Slippage on entry, wider spreads, and lower open interest all increase the cost of maintaining the carry position. Position sizing should reflect these frictions — a 6.1% annualised rate on ZORA may not compensate for the 50-basis-point spread on entry. Pragmatic risk management means accepting lower yields on liquid assets rather than chasing headline rates on illiquid ones.

Finding Best Rates with Tangerine's Perp DEX Aggregator

The funding rate landscape across crypto derivatives is fragmented by design. No single exchange consistently offers the best rate on every asset, and the discrepancies between venues create the very arbitrage opportunities that carry traders exploit. Hyperliquid might show SAGA at 86.97% annualised today, but Aster could be quoting 72%, Vest at 68%, and Binance at 45% — each representing a different entry point for the same carry trade. On the CEX side, Bybit, OKX, Bitget, KuCoin, and BingX all price funding independently based on their own order flow and positioning dynamics.

Tangerine's perp DEX aggregator solves the discovery problem. Rather than manually checking each platform, traders can compare funding rates across Hyperliquid, Aster, Lighter, Vest, Bluefin, Paradex, EdgeX, WOOFi Pro, Hibachi, Pacifica, and dozens of other perp DEXs alongside Binance, Bybit, OKX, BingX, Bitget, and KuCoin — all in one interface. When SAGA is printing 86.97% on Hyperliquid but only 55% on an alternative venue, the aggregator highlights where the real alpha lies. Similarly, for negative-funding shorts on BLAST or MEME, seeing which exchange offers the deepest negative rate — and thus the highest short carry — can add several percentage points to annualised returns.

The compounding effect is significant. A 5% annualised spread captured on a $50,000 position yields $2,500 per year. At $500,000 in deployed capital across multiple carry trades, that same 5% differential becomes $25,000 annually — purely from choosing the right exchange. Yesterday's coverage of NEAR Perp Spotlight May 9: 12.16% Annualised Funding Setup demonstrated how venue selection amplified returns, and the same principle applies today. As Web3 derivatives infrastructure matures and more perp DEXs come online, the fragmentation will only increase — making aggregation not just convenient but essential for serious funding rate traders.

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