Cathena: Multiasset Funding Rate Optimization Strategy details

This video explains how Cathena by RNDM optimizes funding rate differentials across multiple assets.

Key Concepts

Funding Rates: We visualize how funding rates fluctuate over time for different assets (BTC, ETH, and HYPE token). When funding rates are positive, longs pay shorts; when negative, shorts pay longs. These rate differentials create arbitrage opportunities across the market.Delta-Neutral Portfolio Management.

For example if we optimise the position size, overall market exposure (delta) remains at zero while generating approximately $23.70 per day in funding payments.

• BTC: Short 0.5 BTC @ -0.01%/day

• ETH: Long 15 ETH @ +0.02%/day

• HYPE: Short 2500 HYPE @ -0.05%/day

Orderbook Visualization: As shown in the video traders understand where optimal execution paths exist for portfolio rebalancing. We illustrate a comparison between traditional manual execution versus RNDM's AI approach through a cost-efficiency graph. By intelligently navigating the market's liquidity landscape across multiple assets, In the above example RNDM's execution delivers significant improvements:

• Traditional Execution: $246,500

• RNDM Execution: $251,200

• Improvement: +1.91%

Key Advantages

• Funding Rate Optimization: Strategically varying position sizing across assets to maximize funding rate earnings while maintaining neutral market exposure.

• Multi-Asset Rebalancing: Efficiently rebalance portfolios across multiple assets by finding optimal execution paths that minimize slippage and market impact.