In the fast-paced world of crypto trading, where meme coins and AI agents are reshaping how we approach markets, tools like EVplusAI are becoming essential for automating sophisticated strategies. Funding rate arbitrage, or "arb" for short, is one such strategy that involves capitalizing on the differences in funding rates across perpetual futures exchanges. These rates are periodic payments exchanged between long and short positions to keep perp prices in line with the underlying spot prices, preventing significant deviations.

Recently, trader @1PercentBetterT shared an insightful update on their ongoing journey with EVplusAI for automated perp DEX funding rate arb farming. This week 5 report highlights the real-world challenges and tweaks involved in running such a setup on platforms like Lighter and Hyperliquid, using pairs such as $LIGHTER and $HYPE.

Key Highlights from Week 5

The farm started with a $1600 deposit, but the current balance sits at $1012, marking a dip to an all-time low (ATL) of $1001. The all-time high (ATH) was over $1900, showing the volatility inherent in these strategies. For the week, points earned totaled 1.34, with a volume of 96K and an impressive points-per-10K-volume ratio of 0.14—a new high in efficiency despite lower overall volume.

The volume dropped by about 50% compared to the previous week, largely due to technical hiccups. Issues with the VPS (virtual private server) and new Telegram alerts triggered API rate limits on Lighter, causing the bot to stop intermittently and miss 8-9 positions. EVplusAI's dev team resolved these quickly, but it underscores the importance of stable infrastructure in automated trading.

Bias Settings and Market Impact

A big lesson from this update revolves around bias settings in EVplusAI. The trader maintained a 0.5 bias for most of the week, assuming Bitcoin's sweep around 88-89K was a local bottom. Switching to 0.7 led to a sharp decline as BTC dropped from 89K to 80K, with alts dumping 20-30%. This wiped out nearly $500 in a day, highlighting how higher bias amplifies PnL (profit and loss) swings.

For context, bias in these tools adjusts the bot's aggression in positioning—lower values like 0.3 or 0.5 prioritize stability and points farming over high-risk gains. The trader noted that their second farm, running at 0.5 bias, fared better during the same period. In hindsight, sticking to 0.3 from week 2 could have doubled the balance and points.

EVplusAI offers features like Defensive Mode (which reduces volume for stability) and Volatility Algo to adapt to market conditions. The trader disabled Defensive Mode to boost volume and points next week, and appreciated dev showcases like Telegram alerts for positions and bot downtime notifications.

Comparing to Previous Weeks

Looking back at the quoted week 4 update (Day 28), the balance was higher at around $1500-ish implied, with 1.91 points and 149K volume, but a lower efficiency ratio of 0.128. Volume had already halved then due to enabling Defensive Mode, but points per volume improved slightly. Quick trade reviews and blacklisting underperformers helped, showing iterative optimization is key.

What is EVplusAI and Why It Matters for Meme Token Traders

EVplusAI, associated with the $TRUST token, is an AI-powered bot designed for funding rate arbitrage across perp DEXes. It allows users to dual-farm on exchanges like Lighter and Hyperliquid, automating the process of opening long/short positions to capture funding rate spreads. You can even buy funding rate signals directly with USDC, making it accessible for traders hunting +EV (expected value) opportunities.

In the meme coin space, where volatility is king, such tools help practitioners farm points and yields without constant monitoring. However, as this update shows, external factors like market dumps and tech glitches can impact results. For blockchain enthusiasts, it's a reminder to start with lower biases, monitor API limits, and leverage community insights—@1PercentBetterT's thread sparked discussions on optimal settings and even questions about points yield per dollar spent.

Tips for Getting Started with Funding Rate Arb

If you're new to this, funding rate arb is essentially a market-neutral strategy: go long on one exchange and short on another to pocket the rate differences, often yielding 10-40% APY according to broader crypto resources. Tools like EVplusAI simplify execution, but always DYOR (do your own research) and start small to test features like bias and modes.

For more on EVplusAI, check their official X profile. And if you're diving into perp trading, platforms like Hyperliquid and Lighter are great starting points.

This update not only tracks personal progress but also builds a knowledge base for the community, aligning with Meme Insider's mission to demystify meme tokens and AI-driven trading in blockchain.

For the full thread, head over to the original post on X.