Futures Arbitrage on ZKL (zkLink) Token Futures + Futures Strategy

ZKL arbitrage futures + futures

The perpetuals screener showed that there is a good opportunity to catch spread and the funding rate for the token ZKL.

Looking ahead, I can say that we managed to catch a significantly larger spread.

The futures + futures strategy is in many ways similar to the spot + futures strategy: you open a long (buy) on the exchange where the price is cheaper, and open a short on the exchange where the price is higher. and then wait for the prices to converge and close the deal.

I opened a long position on the Gate exchange, and a short position on the Mexc exchange.

I initially entered at 6,000 ZKL, planning to get a high financing rate, wait for the prices to converge and close the deal.

Spread: 0.415/0.4114 = 0.87%

And right before the financing rate was received, the situation became especially pleasant:

On the Gate exchange, the rate was and remains high and negative. I, as the holder of a long position, will receive a bet accrual.

And on the MEXC exchange the rate became positive! I initially expected that the rate here would be negative and that I, as the holder of an open short position, would have to pay the funding rate here, but the rate became positive and now I will receive accruals on both exchanges.

I increased the position to 11,000 ZKL. There were situations when prices were momentarily compared and I managed to close part of the position.
The average short entry price was 0,435; and in long 0,4304 => final spread 1%

Then I waited for the moment and closed the deal completely.

The average exit price from shorts was 0,52; and from long 0,5213 => managed to exit the trade with a difference 1,25%

After that, I waited for the moment and closed the deal completely.

On MEXC I have a loss of $938.32, and on Gate I have an income of $1017.02.My profit was $78.7.

You can also read our previous case study: Crypto arbitrage spot and futures strategy + $450 in 3 days