Hyperliquid Arbitrage: Multi-Exchange Setup with OneKey
Why multi-venue arbitrage is trending again (and what changed)
Onchain derivatives have been moving closer to “CEX-like” execution over the last year, especially as the HL ecosystem expanded beyond perps into a broader onchain stack (including HyperEVM and tighter integration paths). This has made cross-venue basis and spread opportunities more competitive—but also more systematic for traders who can execute quickly while keeping custody risk low. (galaxy.com)
This guide shows a practical, security-first setup for Hyperliquid arbitrage using a OneKey wallet as the cold “master” signer, plus a dedicated execution stack for multi-exchange hedging and automation. (hyperliquid.zendesk.com)
Risk note: Arbitrage is not risk-free. Transfer latency, funding, liquidation mechanics, API downtime, and smart-contract / frontend phishing can all turn a “spread” into a loss.
Target architecture (recommended)
Roles and separation of duties
-
Cold master wallet (OneKey hardware wallet)
Used only for:- Deposits / withdrawals
- Approving (or revoking) delegated trading keys (“API wallets / agent wallets”)
- High-impact account changes
-
Execution signer (API wallet / agent wallet)
A dedicated private key used by your bot to:- Place / cancel orders
- Rebalance positions fast
It should not have withdrawal rights by design, but it can trade your margin into liquidation if compromised—so treat it as high risk. (hyperliquid.gitbook.io)
-
External hedge venue(s)
Typically one or more CEX accounts (spot and/or perps) used to neutralize exposure while you harvest spread, basis, or funding differences.
Why this model matches HL’s mechanics
HL supports API wallets (agent wallets) that a master account can approve to sign trading actions on behalf of the master or subaccounts. Nonce handling is different from Ethereum’s sequential nonces, so isolating strategies by signer (and process) matters for reliability. (hyperliquid.gitbook.io)
Step 0: Security prerequisites (do this before funding anything)
Use only official URLs
Start by bookmarking the official landing page, app, and docs from HL Support. This reduces the chance of lookalike domains and malicious frontends. (hyperliquid.zendesk.com)
Understand WalletConnect session risk
If you connect via WalletConnect, remember it is a communication layer—not custody—but phishing domains and bad session approvals are still common failure points. Prefer wallets and apps that surface domain verification warnings. (docs.walletconnect.network)
- WalletConnect security model overview
- WalletConnect wallet best practices (Verify API, phishing signals)
Step 1: Prepare your OneKey device (cold master)
Checklist
- Initialize the device offline and back up the recovery phrase securely.
- Set a strong PIN; consider enabling an additional passphrase if it fits your operational discipline.
- Create two accounts (recommended):
- Storage / Treasury account (rarely used)
- Trading master account (used only for deposits/withdrawals + agent approvals)
Why: arbitrage stacks tend to add operational complexity (bots, servers, API keys). Hard separation reduces blast radius.
Step 2: Configure Arbitrum One (network + gas)
Even though execution happens on HL L1, onboarding and USDC movements commonly touch Arbitrum One.
Add Arbitrum One network parameters
Use the official Arbitrum Foundation support article to confirm chain settings: (support.arbitrum.io)
Fund gas (ETH on Arbitrum)
You’ll want a small ETH balance on Arbitrum for approval and transfer gas when moving USDC into/out of the app layer.
Step 3: Get canonical USDC on Arbitrum (avoid wrong token risk)
Arbitrage strategies often fail in the most boring way: depositing the wrong asset or the wrong USDC contract.
Verify the official USDC contract address
Use Circle’s documentation to confirm the native USDC contract on Arbitrum before interacting with new addresses. (developers.circle.com)
Bridge funds if needed (official portal)
If you need to move assets between chains, use Arbitrum’s official portal bridge (and be mindful that the old bridge URL has migrated). (portal.arbitrum.io)
Step 4: Connect and deposit (minimums matter)
Connect to the official trading UI
Use the official app URL from HL Support (do not rely on search ads). (hyperliquid.zendesk.com)
Deposit rules you must follow
- Only USDC deposits from the Arbitrum network are supported.
- Deposits below the minimum can be lost depending on your login type and flow. (hyperliquid.gitbook.io)
Reference:
Operational tip: fund your account with more than the bare minimum so you can absorb fees, partial hedges, and testing mistakes without immediately needing withdrawals.
Step 5: Create subaccounts for strategy isolation (manual + bot-friendly)
Subaccounts help you separate:
- Strategy A (spot-perp basis)
- Strategy B (funding capture)
- Strategy C (latency arb / maker rebates)
What subaccounts change (and what they don’t)
- Fee tiering: subaccount volume rolls up to the master fee tier, and subaccounts share that tier. (hyperliquid.gitbook.io)
- Signing: subaccounts do not have private keys; the master (or an approved agent) signs actions on their behalf. (hyperliquid.gitbook.io)
References:
Step 6: Create and approve an API wallet (agent wallet)
This is the core
