CLO arbitrage explained
Right now Yei Finance (CLO) trades on 6 venues we scan: 6 perpetual markets, 2 spot markets and 0 DEX pools. The lowest ask is on Bybit perp at $0.0573 and the highest bid on MEXC perp at $0.0576.
The widest CLO perpetual spread is between Bybit and MEXC: long CLO on Bybit at $0.0573 and short on MEXC at $0.0576 for +0.59% gross, or +0.43% after the 0.16% two-leg fee model. No transfer is needed: both positions stay on their exchanges until the prices converge. The funding difference on this pair is -0.066% per day, which the position pays while it is open.
For a spot–perpetual (cash-and-carry) trade, the best CLO route is to buy spot on MEXC and short the perpetual on MEXC: +0.31% gross, +0.11% net, with +0.053% a day of funding on the short leg.
Spot–spot CLO arbitrage (buy on KuCoin, withdraw, deposit and sell on MEXC) shows -0.47% gross right now. It only works if withdrawals on the buying exchange and deposits on the selling exchange are open, so check the D/W dots before moving coins.
Small CLO gaps usually disappear after fees, slippage and funding. Look at the Net column, the executable Depth and the spread history before trading: a gap that has been open for days is a different trade from a one-minute spike.
Related: CLO funding rates · CLO spread charts · Yei Finance price · arbitrage scanner for all coins.