Table of Contents
Key Takeaways
- Ostium offers diverse trading options across crypto, commodities, stock indices, and forex pairs
- Five proven strategies to maximize points and potential airdrop eligibility
- Recommended 70/30 allocation between delta-neutral farming and directional trades
- Step-by-step implementation guides with practical examples and capital allocations
Introduction: The Evolution of Perpetual DEXs
Perpetual DEXs represent the next frontier in DeFi trading, and Ostium has recently emerged as a standout platform in this category. Unlike many competitors focused solely on crypto markets, users can also get exposure to commodities, stock indices, and forex pairs, positioning itself closer to the “holy grail” of on-chain trading: a unified venue for all asset classes powered by crypto.
Traders can fund their accounts 24/7 with USDC to easily gain exposure to a diverse range of markets, from Bitcoin (BTC), Ethereum (ETH) and Solana (SOL) to gold, oil, forex majors, and the Nasdaq. With the payment rails provided by stablecoins, the ability to trade geopolitical events, country-specific economic developments, and traditional market movements all from a single platform is now possible for a much larger audience.
Ostium vs. Competitors in the Perpetual DEX Landscape
While Hyperliquid currently dominates the perp DEX space with superior liquidity and rapid listing capabilities (especially for pre-TGE tokens), Ostium seems to be building a competitive edge in non-crypto assets. Hyperliquid recently listed PAXG for traders wanting exposure to gold and there’s some indication that other, non-crypto assets like TSLA will also be available soon. But Ostium’s head start in these markets provides a significant advantage.
A key difference between these platforms is their tokenization status. Hyperliquid has already launched its HYPE token, while Ostium remains tokenless. Although, Ostium recently introduced points program, which could potentially be lucrative for early adopters positioning for a future airdrop. And the winner has not been crowned for tokenized stocks and on-chain perps just yet, where early participation in Ostium’s points program could end up with a big payoff if it emerges as the leader in this field in the next year or two.
Farming Strategies Overview: Balancing Risk and Reward
Before implementing specific strategies, consider this fundamental approach to capital allocation:
- Delta-Neutral Farming: Allocate 70% of your trading capital to low-risk farming with zero exposure to price changes in cryptocurrencies like BTC, ETH or SOL.
- Directional Trading: Reserve 30% for higher-risk, higher-reward positions by taking calculated bets on the price movements of BTC, ETH, SOL or other non-crypto assets.
This balanced approach helps preserve capital while still capitalizing on significant market movements. Now, let’s explore five specific strategies for earning Ostium points and positioning for a future airdrop.
Strategy 1: Gold Hedging with XAUt and XAU-USD
This delta-neutral strategy pairs spot gold exposure with a perpetual futures position to minimize risk while generating trading volume.
Implementation
- Start with approximately 750 USDT on Ethereum mainnet
- Purchase 625 USDT worth of Tether Gold (XAUt) on Ethereum mainnet using DeFiLlama swap
- Use Rhino to bridge the rest to Arbitrum
- Deposit 125 USDC on Ostium
- Use all of the funds to short ~0.20 XAU with 5x leverage
Management
- Monitor the position’s liquidation threshold
- If necessary, close the short position and sell the spot gold to recover your initial capital
- Adjust leverage to increase trading volume
- Capture funding payments when the XAU-USD funding rate is positive
- Consider flipping positions (short to long) and selling XAUt for USDC if the funding rate turns negative
The strategy above can also accommodate BTC-USD, ETH-USD and SOL-USD. Instead of holding XAUt, hold BTC, ETH or SOL spot assets instead and short these markets on Ostium to remain delta neutral. The limitation of this strategy is that you cannot generate a lot of volume unless you are able to hedge with large spot holdings.
Strategy 2: The BOLD Portfolio Approach
This strategy involves constructing a balanced portfolio combining Bitcoin and Gold to optimize volatility and returns. While not delta netural (as you are exposed to price fluctuations in both Bitcoin and Gold), it is a low-risk investment strategy you may want to consider.
Implementation
- Start with 1,000 USDC on Arbitrum as trading capital
- Apply 3x leverage on Ostium following ByteTree’s recommended allocation:
- Open a long position of 765 USDC in the BTC-USD market (25.5% allocation)
- Open a long position of 2,235 USDC in the XAU-USD market (74.5% allocation)
Management
- Hold positions and rebalance monthly according to ByteTree’s BOLD report updates
- Rebalancing is based on each asset’s volatility and performance
- Assets with reduced volatility or increased returns receive higher allocation
- Factor in funding rates as a cost of leveraged exposure
- Use a maximum of 5x leverage, ensure that stop losses are in place to prevent liquidation.
Compared to strategy 2, more leverage can be applied to generate more volume on Ostium. However, positions are only rebalanced on a monthly basis while the points for trading activity are allocated weekly. Consider rebalancing weekly rather than monthly to generate more volume and earn more points.
Strategy 3: Cross-Platform Funding Rate Arbitrage
This strategy leverages funding rate differentials between perpetual DEXs to generate returns while qualifying for multiple incentive programs.
Implementation
- Long BTC/ETH/SOL on Ostium
- Short BTC/ETH/SOL on another perpetual DEX with an active incentives/points program
Platform Pairing Options
For Immediate Token Earnings:
For Future Airdrop Positioning:
- Hyperliquid (potential season 2 HYPE airdrop)
- Paradex (active points program)
- Perennial (active Petals program, confirmed airdrop)
- Vest (active points program, confirmed airdrop)
Benefits
- Earn points and/or tokens on multiple platforms simultaneously
- Maintain market-neutral exposure to minimize directional risk
For simplicity, let’s say we use Hyperliquid as our second trading venue, as it also supports USDC deposits on the Arbitrum network.
Go to Hyperliquid’s PAXG-USD market and open a short position. Note that the maximum leverage for PAXG-USD is 5x, so make sure both sides of the trade are 5x leverage or lower. If the funding rate is positive, the short position will earn funding payments. At the same time, open a long position in Ostium’s XAU-USD market with the same amount of capital and same leverage.
Similar to strategy 1, we now have a delta neutral position – meaning that no matter the change in the price of gold, the total exposure is zero and the dollar amount of the investment remains steady and should grow over time as we funding payments are accured. The advantages over strategies 1 and 2 is that strategy 3 earns points/incentives from both Ostium and another perp DEX. Use Kuma or Vertex for immediate earnings, or select another one that’s recommended above to earn points and position for a potential airdrop.
Management
Also, don’t forget to submit stop loss and take profit orders with a small percentage margin for both positions to avoid liquidation. For example, in our example, we have set a stop loss and take profit on both positions around 12% on either side of the entry price. Once any of these orders are hit, the profit from one side of the trade should be transferred out to make the balances on Ostium and Hyperliquid around $1,000 once again.
After some time has passed and the gold price increased since opening the positions, the losses on Hyperliquid side are cancelled out by the profits from the Ostium long. Note that both positions have stop losses and take profit orders in place to automatically exit each leg of the trade, to prevent liquidation and loss of funds in the event of a sharp price movement.
If the price doesn’t hit either the stop loss or take profit orders after some time, close out both positions and repeat the process to increase your trading volume on both Ostium and Hyperliquid. Close out both positions least once per day to generate more volume and as a result, get more Ostium points. Then open both trades again and repeat.
By repeating the process daily, $1,000 in collateral can be used to generate upwards of $50,000 in trading volume on Ostium per week, without taking on any price risk. The strategy can be scaled up to generate more volume and points, or scaled down if you have less capital.
Also, the same strategy can be applied to BTC, ETH or SOL. The maximum leverage for these assets are higher on Hyperliquid and Ostium, so you can open larger positions with the same amount of collateral and generate more volume. For example, you could use 20x instead of 5x leverage. But remember to use tighter stop loss and take profit orders to prevent liquidation. In the case of 20x leverage, your position will be liquidated with a 5% move, so the stop loss and take profit orders should be within 2%-3% or less of your entry price.
Strategy 4: Prediction Market Hedging
This innovative approach combines perpetual futures positions with prediction market bets to create hedged exposures with asymmetric payoff potential.
Implementation
- Open a Short Position:
- Short 0.2 ETH using 180 USDC collateral at 2x leverage on Ostium
- Hedge on Polymarket:
- Find markets like “What price will Ethereum hit in April?” that have price ladders
- Allocate 180 USDC to bet “Yes” on ETH price targets
- Options include betting on ETH hitting $2000 (medium risk, potential $444 return)
- Or on ETH hitting $2200 (higher risk, potential $1163 return)
Other examples could be trading Gold, the S&P 500, or other non-crypto markets and combining that with a bet on a relevant market, similar to the setup shown above.
Advantages
- Creates a hedged position where losses in one market may be offset by gains in the other
- Farm multiple protocols: Ostium or other perp DEXes and different prediction markets: aside from Polymarket, some alternatives with potential airdrops are Superposition’s 9Lives and Limitless.
- If there are no prediction markets for assets on Ostium, you can also create your own on prediction markets, e.g. “What price will Gold/Oil/etc. hit in April?” on Polymarket, 9Lives or Limitless.
The downside of strategy 4 is that there may not be a good enough prediction market to hedge and timing matters. For example, with the “What price will Ethereum hit in April?” market, it was optimal to place a bet at the start of the month.
Strategy 5: Directional Trading with High Leverage
For the risk-tolerant portion of your portfolio (recommended 30% allocation), this strategy embraces calculated directional exposure.
Implementation
- Identify high-conviction trading opportunities in crypto, stock indices, commodities, or the forex market
- Apply significant leverage (up to 150x) for maximum capital efficiency
- Set strict stop-loss levels to manage downside risk
- When profitable, reinvest gains into safer delta-neutral strategies
Risk Management
- Only use a small portion of your total capital on each trade (2%-5% or less)
- Implement strict position sizing and risk parameters
- Consider correlations between different directional bets
- Have a clear exit strategy before entering positions
Optimizing Your Tokenless DEX Strategy
Tokenless perpetual DEXs like Ostium represent a significant opportunity for traders willing to implement thoughtful strategies while positioning for future token distributions. By balancing delta-neutral approaches with selective directional exposure, you can generate consistent returns while accumulating points for potential airdrops.
As the perpetual DEX landscape continues to evolve, platforms offering exposure to diverse asset classes beyond cryptocurrency will likely maintain a competitive advantage. Ostium’s broad market coverage, combined with its pre-token status, makes it particularly attractive for strategic traders in the current environment.
Remember to monitor funding rates, adjust leverage appropriately, and diversify across multiple strategies to optimize your overall performance and risk profile.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Trading perpetual futures and leveraged products involves significant risk. Always perform your own research and consider your financial situation before trading.
