Pendle Unveils Boros: A New Way to Trade Bitcoin and Ethereum Funding Rates
Pendle has launched Boros, a specialized platform built on Arbitrum, enabling crypto traders to directly trade the funding rates of Bitcoin (BTC) and Ethereum (ETH) perpetual futures.
The platform introduces Yield Units (YUs) — tokenized representations of the realized funding yield on 1 BTC or 1 ETH until maturity. Structurally similar to Pendle’s Yield Tokens, YUs allow users to go long or short on funding exposure, offering a direct way to hedge or speculate based on funding rate expectations on venues like Binance.
For traders dealing with frequent funding fees on centralized exchanges, Boros presents a new hedging strategy:
- Short YUs if funding rates are expected to decline.
- Long YUs if a spike in funding rates is anticipated.
At launch, Boros includes $10 million open interest caps per market and 1.2x leverage, with plans to expand into other assets such as Solana (SOL) and Binance Coin (BNB). Additional integrations with derivatives platforms like Bybit and Hyperliquid are in development, with a strong focus on risk controls and gradual scaling.
Liquidity provisioning is also core to Boros. Through Boros Vaults, liquidity providers can deposit capital, earning swap fees, PENDLE incentives, and carry from favorable funding movements. These vaults mirror Pendle’s fixed-yield products and are intended to drive early liquidity and user adoption.
PENDLE rewards will be allocated proportionally based on notional filled and order flow, with future releases to include fee rebates and an open referral program.
By tokenizing funding rate exposure, Boros introduces a new primitive for DeFi traders — one that bridges the gap between centralized derivative markets and decentralized risk management.
