# On-chain secondary markets ## Funding Rate Arbitrage During the bull market, funding rate arbitrage yielded as much as 20% in December 2024. The rise in open interest across centralized exchanges drove a surge in funding and basis trade yields, paving the way for innovative lending strategies on platforms like Morpho and Aave. However, only Bitcoin in the form of cbBTC or wBTC was able to capture these opportunities. ## Stablecoin Rewards Coinbase now offers a 4.7% yield to USDC holders, while Spark provides 6-12% for USDS lenders. Recently, the Aavethena strategy gained traction among sUSDe holders, capitalizing on rising USDC interest rates. As risk-curated lending vaults grow in popularity, more Bitcoin capital than ever is seeking stable yield opportunities. ## ETH Consensus Rewards With the rise of stETH, cbETH, rETH, and other staked ETH representations, these assets have often traded at a premium relative to the base asset and have been used as margin on centralized exchanges. During periods of market volatility, significant arbitrage opportunities emerge between Curve/Uniswap prices and those on centralized exchanges. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://docs.motif.finance/on-chain-secondary-markets.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.