Cross Exchange Arbitrage

Funding Rate Arbitrage

WCM applies natural downward pressure on funding rates due to its ability to arbitrage lending and perps markets. When this arbitrage happens, rates are pushed towards each other, which typically makes lending rates higher than other venues and funding rates lower. This process is described in The Capital Sink.

This mechanic opens up a trading opportunity for arbitrage traders. If you open one perp on WCM and another perp on another exchange in the opposite direction, you will make the in difference rates are profit.

Typically, the challenge with funding rate arbitrage is predicting the duration of the rate difference. Because there is no other exchange with a similar risk engine, especially across DEXs, this difference may persist longer on WCM than on any other exchange.

HFT

Trades on WCM are processed at 10ms intervals. The consequence is that unlike DEXs with slower block times, latency sensitive software gives traders a unique advantage on WCM. We suggest reading Market Making if you are able to provide market making services. WCM will pay for your gas. Many CEX trading teams are integrating WCM as their first DEX.