Pendle’s Boros Launch: Revolutionizing Onchain Funding Rate Trading

DeFi just got sharper. Pendle drops Boros—a game-changer for traders chasing funding rate arbitrage without the CEX middlemen.

No more offchain headaches. Boros slashes inefficiencies by bringing funding rate trades onchain—where they belong. Built for degens, by degens (with better risk management, obviously).

The kicker? Now you can long/short perpetuals while the algo traders fight over basis points in their sleep. Finally, a DeFi primitive that doesn’t pretend to ‘bank the unbanked’—just prints alpha for those who get it.

Wall Street’s quants are sweating. Retail’s stacking sats. And Pendle? They’re laughing straight to the liquidity pool.

A New DeFi Instrument 

According to the official announcement, Boros executes trades while using Pendle’s Yield Units (YUs). One YU-ETH, for example, represents the expected yield from 1 ETH worth of funding until a set maturity. This builds on Pendle’s earlier concept of Yield Tokens (YTs), but with a focus on funding rate exposure.

At launch, each pool on Boros will be capped at $10 million open interest, and users can trade with up to 1.2x leverage. These limits will be raised steadily over time as the system proves stable and secure.

Users can go long on a YU if they expect funding rates to increase, or short if they think they will fall. This solution is especially useful for traders who regularly pay funding fees and want to lock in costs ahead of time.

The team also introduced a feature named Boros Vaults. This feature lets users provide liquidity to these markets. Plus, in return, they can earn PENDLE rewards, trading fees, and benefit from positive changes in implied APR.

The product’s rollout is phased, with the team focusing on risk management first. Since Boros runs on a new margin system, the developers are closely monitoring the market during its early days.

Pendle’s introduction of Boros shows how DeFi is becoming more advanced, as it is now turning once-technical parts of trading like funding rates into accessible and tradable instruments.

Also Read: Base Points to Sequencer Handoff Failure for 33-Min Outage