Pendle Launches “Boros” to Let Traders Bet on Crypto Funding Rates On-Chain

Andrew Chen
Pendle (PENDLE)

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Key Takeaways:

  • Pendle’s Boros lets users trade crypto funding rates on-chain using Yield Units.
  • The platform starts with BTC and ETH funding from Binance on Arbitrum.
  • Boros Vaults offer liquidity providers rewards, fees, and yield exposure.

Pendle Finance has officially launched Boros, a novel platform allowing decentralized, on-chain trading of crypto perpetual funding rates. The service debuts on Arbitrum with BTC/USDT and ETH/USDT funding data sourced from Binance, transforming an otherwise opaque mechanism into a tradable asset class within DeFi.

Users can now bet on or hedge whether funding rates—fees paid or received to maintain futures positions—will rise or fall, offering a previously unavailable tool in DeFi.

Yield Units: The Engine Behind Boros

At the heart of Boros lies Pendle’s new Yield Units (YUs). A single YU represents the projected yield from a set amount of crypto funding until a defined maturity date. For instance, one YU-ETH reflects the expected ETH funding income.

This builds on Pendle’s existing Yield Tokens (YTs) but shifts focus toward trading funding rate exposure rather than fixed DeFi yields. Traders can go long or short on a YU depending on whether they expect rates to increase or decrease.

Each pool will start with a $10 million open interest cap and 1.2x leverage, both expected to increase as the system matures.

Boros Vaults Enable Passive Yield Opportunities

Beyond active trading, Boros introduces Boros Vaults, allowing users to supply liquidity to these markets. In return, they earn Pendle rewards, trading fees, and can profit from favorable shifts in implied APR.

Also Read: PENDLE Surges 8% as Whale Buys and Coinbase Listing Boost Demand

These vaults offer an additional incentive for users to support the ecosystem while managing risk more passively. The launch follows a phased approach, with a strong emphasis on monitoring risk and stability in the early stages.

DeFi Moves One Step Closer to Traditional Derivatives

With Boros, Pendle Finance is advancing DeFi’s sophistication by tokenizing and democratizing funding rate speculation. This release reflects a broader trend in DeFi—transforming complex financial mechanisms into accessible, modular instruments for both retail and professional traders.

Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.

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