Pendle Unveils Boros Platform, Enabling Direct Exposure to BTC and ETH Funding Rates
Pendle has launched Boros, a new derivatives platform on Arbitrum that allows users to take directional positions on Bitcoin (BTC) and Ethereum (ETH) funding rates—offering traders a novel tool to hedge or speculate on volatility in perpetual markets.
At the core of Boros are Yield Units (YUs), on-chain instruments that track the realized funding yield on one unit of notional—either 1 BTC or 1 ETH—until maturity. Similar to Pendle’s Yield Tokens, YUs enable traders to express views on funding rate trajectories. Long YU positions benefit from rising funding rates, while short YU positions profit from declining rates.
The platform debuts with a $10 million open interest cap per market and 1.2x leverage, as the Pendle team prioritizes controlled rollout and systemic stability. Future expansions include additional listings (such as SOL and BNB) and integrations with trading venues like Bybit and Hyperliquid.
For traders actively managing funding fee exposure on centralized exchanges, Boros provides a new on-chain hedge: short YUs when funding rates are expected to decline, or long YUs when a funding spike is anticipated.
Liquidity provisioning is also a key focus. Boros Vaults, modeled on Pendle’s fixed-yield architecture, will allow liquidity providers to earn swap fees, PENDLE incentives, and positive carry from favorable funding rate shifts. These vaults are expected to play a critical role in early-stage liquidity bootstrapping.
PENDLE incentives will be distributed proportionally to notional volume and order flow, with upcoming referral programs and fee rebates designed to accelerate user adoption and deepen market depth.
By bridging on-chain mechanics with off-chain funding dynamics, Boros represents a step toward more sophisticated DeFi-native derivatives infrastructure, empowering traders to manage risk and express funding-based views in a capital-efficient way.
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