Pendle Finance, a well-known decentralized finance protocol, has introduced a new product called Boros, allowing users to trade on-chain crypto funding rates. The platform is now live on Arbitrum.
A New DeFi Instrument Boros
Boros allows traders to speculate on or hedge funding rates, which are the fees traders pay or receive when holding perpetual futures. Now users can trade based on their expectations of funding rate changes.
Benefits and Features of Boros
According to the official announcement, Boros executes trades using Yield Units (YU). Each YU-ETH represents the expected yield from 1 ETH until a set maturity. The platform also introduces Boros Vaults, enabling users to provide liquidity and earn Pendle rewards and trading fees.
The Future of Trading on the Platform
At launch, each pool on Boros will be capped at $10 million open interest. Users can trade with up to 1.2x leverage. The Pendle team is monitoring the market closely during the early days of the product to ensure stability and security.
The introduction of Boros shows how decentralized finance is becoming more advanced, making complex trading instruments like funding rates accessible to a wider audience.
