CONVERGENCE TRADE: THE PUMP TRADE YOU NEVER HEARD ABOUT

Summary from the TLDR Crypto newsletter

The $PUMP convergence trade exploited a 10% price spread between Binance and HyperLiquid perps by going long on Binance while shorting on HyperLiquid, capturing both the premium convergence and massive funding rate differentials. This delta-neutral strategy yielded 13-18% returns in just 2 days when prices converged at $0.0068, though it required careful margin management due to HyperLiquid's isolated margin requirements and potential premium expansion risks. The opportunity exists because both exchanges compete to be the primary quote venue for new assets with separate pre-markets that don't reference each other, creating inefficiencies that persist until spot trading enables easier arbitrage.