Arbitrage on spot prices is largely dead due to high frequency bots but the derivative market structure still offers yield for those paying attention to funding intervals. I recently deployed a Python script to track the predicted funding rates across five different derivatives platforms to identify discrepancies thirty minutes before the eight hour settlement window closes.
The data indicates that during strong trend continuation the herd mentality on the largest exchanges pushes funding rates to unsustainable levels as retail leverage piles in. Interestingly mid sized platforms often lag behind this metric significantly. I observed specifically on BYDFi that the funding rate updates often trail the major exchanges creating a temporary spread capable of covering taker fees. This gap appears to exist because the arbitrage bots are slower to correct these specific liquidity pools compared to the majors.
For a delta neutral strategy these inefficiencies represent yield that does not require directional exposure. You essentially short on the venue with the spiked rate and long on the venue with the lagging rate to capture the difference. Stop looking at the chart and start looking at the metadata of the derivatives themselves if you want to find an edge in a saturated market.