Celebratory Dance thanks to @crypto_linn

1/ We worked with the @pendle_fi team to build the risk stack for @boros_fi, the first onchain protocol for trading funding rates. This required new frameworks, including dynamic margin models, auto-deleveraging mechanics, and real-time risk monitoring.

Huge news for all funding rate traders. @pendle_fi has launched Boros @boros_fi, a new onchain platform on Arbitrum that lets users trade funding rates from CEX perps like Binance, rather than the price of assets like $BTC or $ETH. Instead of speculating on price direction, Boros introduces Yield Units (YUs, similar to YTs on Pendle), YU-ETH represents the funding yield from 1 ETH perp, allowing users to go long if they expect funding rates to rise or short if they expect them to drop. This unlocks a new layer of strategy, especially for protocols like @ethena_labs, with an almost $10B TVL, relying on positive funding rates to generate stablecoin yields and can now hedge more efficiently without complex OTC setups. Early traction is strong with $800k already deposited into Liquidity Vaults. With $10M OI caps per pair (BTC/ETH only for now), 1.2x leverage, and support expanding soon, Boros may not be retail-friendly yet, but I already plan to prepare a couple of posts on how we can hedge our positions there. Furthermore, there is no 2nd token, which makes $PENDLE even more valuable as it will be used for incentives and all trading fees acquired by the protocol. A huge milestone not just for Pendle, but for the entire crypto space. Truly excited for the team and wishing them massive success ahead.

Very significant launch by @pendle_fi. Combined with Pendle's existing PT/YT mechanism for on-chain yields, Boros now covers off-chain yields (CEX funding rates). Perps traders will be able to lock in funding rate costs. Could be very useful for @ethena_labs one day, who could potentially lock in future funding rates by longing YUs when rates are attractive. This transforms variable funding income into fixed income for specific periods. During periods of negative funding (like bear markets), Ethena could have pre-hedged by shorting YUs. This would offset losses from paying funding, stabilizing USDe's yield, and would help to stop the supply contracting during risk off periods (would stop the fudoooors). Obviously early days, and it needs to become battle tested, but think this is a big launch for crypto as a whole. There is still only one token too - $PENDLE Elite team, elite protocol.

Congrats to our Stellar @Rightsideonly and the team at @pendle_fi on the launch of Boros! Pretty wild that you can now hedge exposure or speculate on funding rates onchain. Maybe it’s time for all the DeFi builders & enjoyooors in ARC to drop a Stellars Playbook on yield farming? 👀

Boros od @pendle_fi konečně vysílal Obrovský milník a opravdu se těším, až to zkusím Velký výzkum přijde později dnes, Gpendle

Nový $PENDLE Boros je opravdu zajímavý produkt, o kterém si myslím, že trhy stále bojují s pochopením jeho významu. Např.: O víkendu byl BTC agresivně shortován s mírou financování -3%. Myslíte si, že dojde k short squeeze a toužili jste po $BTC - přišli byste o peníze kvůli spotovému prodeji, který snížil ceny a zvýšil míru financování. Pokud byste se místo toho rozhodli jít do dlouhé pozice YU na Pendle Boros, platili byste -3% a dostávali 10% APY a zároveň byste získali zhodnocení kapitálu v BTC. Jedná se o velké otevření velkých stájí s výnosem, které vyhlazují zisky, i když jsou sazby financování záporné. Dalším krokem pro tento produkt bude pravděpodobně zvýšení dostupného OI, abyste získali více poplatků za obchodování.

Quick Explain & Personal Though on Pendle's @boros_fi 1. Funding rates are periodic payments between long and short prep traders. If the market is bullish (perp price > spot), longs pay shorts (positive funding rate) 2. Boros "tokenizes" these funding rates into assets called Yield Units (YU). Example: 1 YU-ETH = the funding yield from 1 ETH notional in Binance's ETH/USDT perp 3. If you think funding will go up ▶︎ Long YU. If you think funding will go down ▶︎ Short YU. 4. Use Case Example: Ethena, which relies on positive funding for stablecoin yields, can short YUs to lock in rates and protect against drops ---- thoughts: 1. This product is targeting the funding rate arbs and protocol, but not normal retail user. I don't think much retails really care about how much they are paying to the funding rate. For funding rate stablecoin protocol like Ethena, they may have huge demand on "Short YU", not sure about the liquidity for them to hedge if buy side is not enough. 2. Funding rate formula can be adjusted by CEX. From below chart, you can actually observe the recent funding rate for $ETH is pretty consistent to stay on/below 0.01%, even during a bull market. Exchange generally now encourage more AUM so they tend to not make their funding rate too high. The result is more smart users (who actually who play with trading funding rate) will also likely to sell YU as well. So I'm not too sure who will be the buy sides of YU. 3. Pendle Team always deliver a great product, I'm a pendle user and I'm willing to trust them have a proper mechan on this product, including risk control.

this is big. pendle just launched @boros_fi a new way to trade perp funding rates directly. you don’t need to hold the perp anymore. just take a view on the funding rate itself. ➜ directional bets ➜ hedging ➜ stacking yield layers ➜ funding rate arbitrage ➜ managing exposure without leverage ➜ integrating with pendle’s existing yield markets it’s simple on the surface, but powerful under the hood. boros gives you access to a market that used to be locked behind perp positions. clean execution. real use case. pendle keeps shipping.

Huge respect to the @pendle_fi crew. Exciting times ahead with this primitive being enabled. Look forward to seeing how this becomes a pillar to onchain capital markets and more product innovation. Jobs not done as always.