How to arb USDT0 on @HyperliquidX? As we have been arbing for several months on @HyperliquidX, I noticed that there were some decent yield farming opportunities that people are not aware about. First of all, this strat works much better if you have some decent volume on @HyperliquidX over the last 14 days and some $HYPE staked to get a good fee tier. As you can see below, it's not uncommon that USDT0 loses peg. 5 days ago, USDT0 nuked to almost $0.98, a 2% discount. The reason is simple: there are not enough market makers on USDT0 on @HyperliquidX and the USDT0 bridge from HyperEVM/Hyperliquid to Ethereum takes 12 hours for safety reasons. As soon as HYPE is dumping, there are arb opportunities for actors to sell HYPE for USDT0 on HyperEVM and buy HYPE for USDC and then sell USDT0 for USDC on Hypercore. Causing a sell pressure on USDT0 and a potential depeg. As you can see below, the USDT0 orderbook is quite thin. I believe there is space for some actors with good Hyperliquid fee tier to place a limit order on USDT0 to try to buy it as a discount. For instance here, if you place you bid order at 0.9991, you have good chance to be filled. Once you get filled, the easiest way to take advantage is bridging back to Ethereum with USDT0 bridge and to sell it for USDC. Right now on @CoWSwap, you can sell USDT0 at a 0.048% premium for USDC. If you manage to buy at 0.9991, it would mean a 0.137% win before hyperliquid trading fees. Meaning a 100% APY if we only consider 12 hours bridge or 50% APY if we consider 12 hours to get filled + 12 hours bridge. While doing this, you are trading spot on Hyperliquid as a maker, which should eligible for an airdrop in case of a hyperliquid season 3.