(2/8)
What is Boros?
Built by the Pendle team, Boros lets you trade or hedge funding rates from major perp markets, starting with BTC and ETH on Binance.
Speculate if funding goes ⬆ or ⬇️.
Hedge if you're exposed to funding volatility (whether long or short).
All on-chain. Only on Arbitrum (atm).
(4/8)
Why does this matter?
Funding is a major cost (or income) for perp traders.
Until now, it was extremely hard to hedge it.
With Boros, traders and protocols can now fix their funding exposure, just like you’d fix IRs in TradFi with credit swaps
This basically unlocks a whole new market.
(5/8)
Real Use Case:
Protocols like @ethena_labs rely on positive funding to sustain “stablecoin” yields.
To protect themselves, they can short YUs to lock in high funding, and avoid getting rekt by a sudden drop.
This is real demand, not just speculation.
(6/8)
Something you should know:
1⃣Markets are permissionless
2⃣Settlement is on maturity
3⃣LPs earn Pendle incentives, swap fees, and APR from favorable movements
4⃣Initial leverage is capped at 1.2x
5⃣OI limit = $10M per market (for now 👀)
(7/8)
Our 2 Cents:
This product isn’t built for the average retail user, but rather for funding arbitrage pros, treasury managers, MMs and structured product protocols
Liquidity will be the challenge: who’s on the long side when everyone wants to hedge?
With PTs recognized as collateral, and now Boros tokenizing FRs, they’re moving toward becoming the yield layer for crypto (and beyond).
(8/8)
Boros is still early, but the wiggle room is huge:
👉More assets ( $SOL, $BNB, etc.)
👉More exchanges (Bybit, Hyperliquid…)
👉Increased composability within the DeFi ecosystem
👉Real-world assets down the line?
This could be the start of something big. 🌊
10.4K
29
The content on this page is provided by third parties. Unless otherwise stated, OKX is not the author of the cited article(s) and does not claim any copyright in the materials. The content is provided for informational purposes only and does not represent the views of OKX. It is not intended to be an endorsement of any kind and should not be considered investment advice or a solicitation to buy or sell digital assets. To the extent generative AI is utilized to provide summaries or other information, such AI generated content may be inaccurate or inconsistent. Please read the linked article for more details and information. OKX is not responsible for content hosted on third party sites. Digital asset holdings, including stablecoins and NFTs, involve a high degree of risk and can fluctuate greatly. You should carefully consider whether trading or holding digital assets is suitable for you in light of your financial condition.