In the fast-paced world of crypto trading, funding rate arbitrage has become a go-to strategy for many looking to earn steady yields. But as Austin King, co-founder of Nomina, points out in his recent X post, the real key to success isn't just spotting high APRs—it's about holding those positions long enough to make real profits after covering entry and exit costs.

Funding rates, for those new to the term, are periodic payments between long and short positions in perpetual futures contracts. They're designed to keep the futures price anchored to the spot price. In arbitrage, traders exploit discrepancies in these rates across exchanges or pairs, often aiming for positive funding while hedging to stay delta-neutral.

King's one-minute video breaks it down simply: the bet in funding rate arb is on the "durability" of that juicy APR. Enter Nomina, a tool he co-founded (after selling his previous company to Ripple), which integrates historical funding rate data to help spot reliable opportunities.

In the demo, King scrolls through a dashboard showing flashy APRs—like 170% on one pair. But he warns against jumping in blindly. By checking the historical chart, he reveals its volatility: it could flip to -500% in hours. Not ideal for anyone wanting to sleep at night.

Instead, he hunts for stability. Another pair looks better—less spiky, more consistent positivity. Then he lands on KAITO, a meme token with a solid historical funding rate trend. "This is an example of a trade that I personally would make," he says.

Why does this matter for meme token enthusiasts? Meme coins like KAITO often see wild funding rates due to hype-driven volatility. Tools like Nomina help filter the noise, letting you focus on positions that can sustain those 100%+ APRs without tanking your PnL (profit and loss).

The benefits King highlights:

• Sustain high APRs longer: Historical insights predict durability, avoiding quick reversals.
• Cut trading costs: Fewer forced exits mean lower fees.
• Reduce volatility: Stable rates keep your positions smoother.

Nomina is still in private beta, but King's offering five access codes in the replies—sparking quick interest from traders eager to test it on platforms like Hyperliquid and Extended. One user, Shak, already shared positive feedback: "Works nice. Been testing it out since today."

If you're diving into perp trading, especially with meme tokens, incorporating historical data could be a game-changer. It turns gut-feel trades into data-driven decisions, potentially boosting your overall returns.

For more on Nomina, check out their official site or follow @Nomina on X. And if you're hunting beta access, head to the thread—those codes won't last long.

Stay ahead in the meme token game with tools that cut through the chaos. Happy arbitraging!