TUSD
T / United States dollar
crypto Composite

TradFi will implement permissioned blockchains to continue to operate as they have in the past, but with added efficiency and cost savings. e.g. exchanges like Nasdaq along with clearing houses like DTCC are getting ready for legislation changes to allow the tokenisation of RWA (bonds, equities, commodities, etc). The average user of these services won't notice a difference other than there will be efficiencies like instant clearing (T+0) and, eventually, the move to 24/7 trading. I don't know if you can call that "mainstream" but it will become part of the infrastructure for enterprise. The average person will use it and not know it, just like most enterprise tech. The chains they use you will have never heard of. They will be built for enterprise and to be regulatory compliant.

X402 is a New Token and is sitting on the ground floor. Trading is thin and as it is relatively unknown. Once everyone else discovers it it’ll climb quick.
The team and white paper is here on their website x402.org
The best way to accept digital payments.
Built around the HTTP 402 status code, x402 enables users to pay for resources via API without registration, emails, OAuth, or complex signatures.
No fees
x402 as a protocol has 0 fees for either the customer or the merchant.
Instant settlement
Accept payments at the speed of the blockchain. Money in your wallet in 2 seconds, not T+2.
Blockchain Agnostic
x402 is not tied to any specific blockchain or token, its a neutral standard open to integration by all.
Frictionless
As little as 1 line of middleware code or configuration in your existing web server stack and you can start accepting payments. Customers and agents aren't required to create an account or provide any personal information.
Security & trust via an open standard
Anyone can implement or extend x402. It's not tied to any centralized provider, and encourages broad community participation.
Web native
Activates the dormant 402 HTTP status code and works with any HTTP stack. It works simply via headers and status codes on your existing HTTP server.
x4 0 2 F r i c t i o n le s s ,
a u to n o m o u s p ay m e nt s
fo r A P I s a n d A I Ag e nt s
An open standard for AI-first
payments
Natively supported in
C oinba s e ’s A gentKit
simplif ying AI-native
payments.
x402 is an open payment standard that lets AI agents
and APIs pay per use—no accounts, subscriptions, or
API keys required. By leveraging HT TP 402 "Payment
R equired", x402 enables re al-time, pay-as-you-go
monetization w ith cr yptocurrency, including
stablecoins like USDC, unlocking frictionless,
AI-native payments.

If you ever held some idle stablecoins you've probably asked yourself:
"How can I earn some nice yield on these stables with minimum risk ?”
A quick Google search will give you many answers : from outright scams to flashy earn options on exchanges, to influencers selling hopium.
Any if you go even deeper down the rabbit hole you might stumble upon: funding rate arbitrage. The “passive and risk-free” strategy for collecting triple-digit APYs.
No price predictions, no trading, and probably no sleeping either.
# What is funding rate arbitrage ?
Funding rate is a fee that traders pay to keep the perpetual futures price close to the real spot price. You’ll see it on every exchange that offers perpetual futures trading :
[Funding rates for BTCUSDT pair on exchanges Binance, OKX, and GMX (respectively) at roughly the same time (October 22, 2025)](https://imgur.com/a/D2YLTvF)
Here’s how it works :
Positive funding rate → Longs pay shorts (because longs are crowded).
Negative funding rate → Shorts pay longs (because shorts are crowded).
The funding rate arbitrage idea is brilliantly simple :
When the funding rate is positive, you buy the coin on spot and short the same amount in perpetuals. Now you are collecting funding rate on your short position. You are also delta neutral - price moves don’t affect you.
# Why does this strategy look so attractive?
(or what the crypto bros will tell you while selling their “arbitrage masterclass” for $499)
1. There is opportunity for farming huge funding rates
Dig through pairs on exchanges, and you will find some pairs with wild funding rates - like this one :
[Funding rate for EVAAUSDT pair on Binance exchange (October 22, 2025)](https://imgur.com/a/H8hsFLN)
Here we can see that funding rate (on October 22, 2025) for EVAAUSDT pair on Binance exchange was +0.10784%, paid every 4 hours (or 236.18% APY).
Let’s say you have 5,000 USDT to play with in arbitrage. The strategy would look like this :
* Buy 2,500 USDT worth of EVAA spot.
* Short EVAAUSDT perpetual derivative worth 2,500 USDT at the same time (at 1x leverage).
You now collect +0.10784% every 4 hours on that short leg - around 16.17 USDT daily, 501.45 monthly, or 5904.24 annually.
Sounds great.
2. Price doesn’t affect the position
Because this is a delta-neutral strategy (long spot – short perp), returns don’t depend on the price movement. If done correctly, they should only be affected by funding rates. So, you’re earning passive income at high percentages without worrying about the direction of the asset that you’re holding. Also, the funding rate is paid 24/7, that means earning even while you sleep.
Sounds even better.
3. When funding rates dry up, open new position on a coin that has a better rate
When the funding rate drops, simply close the position and open a new one that offers better opportunities with a higher funding rate. Rinse and repeat.
Now, this is starting to sound too good to be true, right? Well… it kinda is.
# Why and how can this go wrong ?
(or what the crypto bros probably WON’T tell you)
1. High funding rates are dangerous
Those wild APYs on exchanges we just mentioned - they change very quickly (in a matter of hours). The coins with highest funding rates are, of course, the riskiest and most volatile - meaning their funding rates are also the most variable.
That EVAAUSDT pair from earlier ?
Dropped form 0.10784%/4h (236.18% APY) to 0.005%/4h (10.95% APY).
IN TWO DAYS.
[Funding rate for EVAAUSDT pair on Binance exchange (October 24, 2025)](https://imgur.com/a/Q6OISdA)
Which means if we went in this trade our daily collection of funding rates would have dropped from 16.17 USDT to 0,75 USDT daily. Not so good.
2. Big price swings are dangerous.
Yes, this is a delta-neutral strategy, but that does not make it risk-free.
Say your short leg (that is 1x leveraged) moves against you more than 100% while you’re not monitoring the position. You get liquidated.
Again, the coins with highest funding rates are usually those that are pumping hard so this is also real risk if you’re chasing high rates.
Also, funding rates for such coins can turn negative very quickly, and you might find yourself paying fees instead of receiving them.
3. Spreads, fees, and timing
Okay, the funding rate turned negative or dried up and it’s not profitable to stay in the position anymore.
Let’s just enter another trade where the funding is better, right ? Spreads and fees can eat into the profits very fast if we do this often.
For the sake of not making this too long I’m skipping on the risks of exchanges, trading freezes, system outages, and so on - but they should be taken into when considering this strategy.
# A more realistic take
(or how to do this correctly and what to expect)
# Research
If you’re going to try funding-rate arbitrage, first and foremost — don’t pick exotic pairs that currently show a massive funding rate. Do your research first.
Analyze and find the funding-rate history of the coins that you’re interested in.
Compare rates across different exchanges and try to find which ones have stable and slightly higher funding rates for the coin that you’re researching. Most exchanges have funding rate history data you can research.
Decentralized exchanges might have even better funding rates but that adds some complexity.
# Choosing a pair
Keep in mind when choosing a pair that you’ll want to stay in the trade long enough to offset opening/closing fees and spreads. So, again, you need to select a pair that will likely have reasonably good and relatively stable rates for weeks/months and covers the math :
Real yield = Funding Income - Trading Fees - Spread
With usual costs being :
Trading fees (entry + exit): \~0.02–0.10% each side. Spread/slippage: 0.01–0.05% per leg
If unsure, it’s usually best to find exchanges that have good and stable funding rates for BTC and ETH and go with those as a start.
# Execution
Okay, you decided which coin to go for - now - you buy spot, and short the same notional on the derivative with 1× leverage at the same time.
Set alerts and monitor the situation: alerts for changes in funding and for large price moves, so you can adjust margin or close the position if needed.
Be ready for different scenarios and have a plan. What will you do and when will you exit? How many cycles of negative funding will you tolerate if it happens? How many days of weak funding before you step out. Keep monitoring position and act accordingly.
Not so passive strategy as you can see..
# Last but not least
Have realistic expectations. 10%-20% APY is amazing if you are great at research and managing risk and you execute this strategy well.
But going for higher rates is already pushing it too much and taking bad risks.
So, don’t forget 15% is already much better than most earn products offered on exchanges for stablecoins. Don’t chase unrealistic yields. It almost always ends up badly.
If you’re interested in more, consider subscribing - more thoughts on similar topics are yet to come! :)
Thanks for reading,
Haris T.
Disclaimer: None of this is financial advice. It’s for educational and entertainment purposes only. Do your own research, make your own decisions, and never trade money you can’t afford to lose.

Read this it is what you are thinking to a T and proves it

How about this one, I was just looking at crypto currency and I checked this one and it was up 98,000 % had to check with Google and ask, it said it was probably a glitch, but I also saw the MAGA TRUMP COIN AND THE HUGE INCREASE, AND I SAID TO MYSELF, NAAA, I AIN'T GONNA FALL FOR NO BANANA IN MY TAIL PIPE 🖕.

If you ever held some idle stablecoins you've probably asked yourself:
"How can I earn some nice yield on these stables with minimum risk ?”
A quick Google search will give you many answers : from outright scams to flashy earn options on exchanges, to influencers selling hopium.
Any if you go even deeper down the rabbit hole you might stumble upon: funding rate arbitrage. The “passive and risk-free” strategy for collecting triple-digit APYs.
No price predictions, no trading, and probably no sleeping either.
# What is funding rate arbitrage ?
Funding rate is a fee that traders pay to keep the perpetual futures price close to the real spot price. You’ll see it on every exchange that offers perpetual futures trading :
[Funding rates for BTCUSDT pair on exchanges Binance, OKX, and GMX (respectively) at roughly the same time (October 22, 2025)](https://imgur.com/a/D2YLTvF)
Here’s how it works :
Positive funding rate → Longs pay shorts (because longs are crowded).
Negative funding rate → Shorts pay longs (because shorts are crowded).
The funding rate arbitrage idea is brilliantly simple :
When the funding rate is positive, you buy the coin on spot and short the same amount in perpetuals. Now you are collecting funding rate on your short position. You are also delta neutral - price moves don’t affect you.
# Why does this strategy look so attractive?
(or what the crypto bros will tell you while selling their “arbitrage masterclass” for $499)
1. There is opportunity for farming huge funding rates
Dig through pairs on exchanges, and you will find some pairs with wild funding rates - like this one :
[Funding rate for EVAAUSDT pair on Binance exchange (October 22, 2025)](https://imgur.com/a/H8hsFLN)
Here we can see that funding rate (on October 22, 2025) for EVAAUSDT pair on Binance exchange was +0.10784%, paid every 4 hours (or 236.18% APY).
Let’s say you have 5,000 USDT to play with in arbitrage. The strategy would look like this :
* Buy 2,500 USDT worth of EVAA spot.
* Short EVAAUSDT perpetual derivative worth 2,500 USDT at the same time (at 1x leverage).
You now collect +0.10784% every 4 hours on that short leg - around 16.17 USDT daily, 501.45 monthly, or 5904.24 annually.
Sounds great.
2. Price doesn’t affect the position
Because this is a delta-neutral strategy (long spot – short perp), returns don’t depend on the price movement. If done correctly, they should only be affected by funding rates. So, you’re earning passive income at high percentages without worrying about the direction of the asset that you’re holding. Also, the funding rate is paid 24/7, that means earning even while you sleep.
Sounds even better.
3. When funding rates dry up, open new position on a coin that has a better rate
When the funding rate drops, simply close the position and open a new one that offers better opportunities with a higher funding rate. Rinse and repeat.
Now, this is starting to sound too good to be true, right? Well… it kinda is.
# Why and how can this go wrong ?
(or what the crypto bros probably WON’T tell you)
1. High funding rates are dangerous
Those wild APYs on exchanges we just mentioned - they change very quickly (in a matter of hours). The coins with highest funding rates are, of course, the riskiest and most volatile - meaning their funding rates are also the most variable.
That EVAAUSDT pair from earlier ?
Dropped form 0.10784%/4h (236.18% APY) to 0.005%/4h (10.95% APY).
IN TWO DAYS.
[Funding rate for EVAAUSDT pair on Binance exchange (October 24, 2025)](https://imgur.com/a/Q6OISdA)
Which means if we went in this trade our daily collection of funding rates would have dropped from 16.17 USDT to 0,75 USDT daily. Not so good.
2. Big price swings are dangerous.
Yes, this is a delta-neutral strategy, but that does not make it risk-free.
Say your short leg (that is 1x leveraged) moves against you more than 100% while you’re not monitoring the position. You get liquidated.
Again, the coins with highest funding rates are usually those that are pumping hard so this is also real risk if you’re chasing high rates.
Also, funding rates for such coins can turn negative very quickly, and you might find yourself paying fees instead of receiving them.
3. Spreads, fees, and timing
Okay, the funding rate turned negative or dried up and it’s not profitable to stay in the position anymore.
Let’s just enter another trade where the funding is better, right ? Spreads and fees can eat into the profits very fast if we do this often.
For the sake of not making this too long I’m skipping on the risks of exchanges, trading freezes, system outages, and so on - but they should be taken into when considering this strategy.
# A more realistic take
(or how to do this correctly and what to expect)
# Research
If you’re going to try funding-rate arbitrage, first and foremost — don’t pick exotic pairs that currently show a massive funding rate. Do your research first.
Analyze and find the funding-rate history of the coins that you’re interested in.
Compare rates across different exchanges and try to find which ones have stable and slightly higher funding rates for the coin that you’re researching. Most exchanges have funding rate history data you can research.
Decentralized exchanges might have even better funding rates but that adds some complexity.
# Choosing a pair
Keep in mind when choosing a pair that you’ll want to stay in the trade long enough to offset opening/closing fees and spreads. So, again, you need to select a pair that will likely have reasonably good and relatively stable rates for weeks/months and covers the math :
Real yield = Funding Income - Trading Fees - Spread
With usual costs being :
Trading fees (entry + exit): \~0.02–0.10% each side. Spread/slippage: 0.01–0.05% per leg
If unsure, it’s usually best to find exchanges that have good and stable funding rates for BTC and ETH and go with those as a start.
# Execution
Okay, you decided which coin to go for - now - you buy spot, and short the same notional on the derivative with 1× leverage at the same time.
Set alerts and monitor the situation: alerts for changes in funding and for large price moves, so you can adjust margin or close the position if needed.
Be ready for different scenarios and have a plan. What will you do and when will you exit? How many cycles of negative funding will you tolerate if it happens? How many days of weak funding before you step out. Keep monitoring position and act accordingly.
Not so passive strategy as you can see..
# Last but not least
Have realistic expectations. 10%-20% APY is amazing if you are great at research and managing risk and you execute this strategy well.
But going for higher rates is already pushing it too much and taking bad risks.
So, don’t forget 15% is already much better than most earn products offered on exchanges for stablecoins. Don’t chase unrealistic yields. It almost always ends up badly.
If you’re interested in more, consider subscribing - more thoughts on similar topics are yet to come! :)
Thanks for reading,
Haris T.
Disclaimer: None of this is financial advice. It’s for educational and entertainment purposes only. Do your own research, make your own decisions, and never trade money you can’t afford to lose.