With Boros, Pendle Opens a New Market for Speculating on BTC and ETH Funding Rates

Pendle Launches Boros to Let Traders Bet on Bitcoin and Ethereum Funding Rates

Pendle has introduced Boros, a new platform on Arbitrum that lets users directly trade the funding rates of Bitcoin (BTC) and Ethereum (ETH) perpetual futures. This marks a new way for crypto traders to hedge or speculate on the costs associated with holding leveraged positions on centralized exchanges.

At the center of Boros are instruments called Yield Units (YUs) — similar to Pendle’s existing Yield Tokens. Each YU reflects the realized funding yield of 1 BTC or 1 ETH until expiry. Traders can go long if they expect funding rates to rise, or short if they think rates will fall. This makes Boros particularly useful for active participants in perpetual markets like Binance.

The platform launched with $10 million caps per market and 1.2x leverage, with plans to gradually expand to other assets like SOL and BNB, and support for more venues including Bybit and Hyperliquid. Pendle is deliberately pacing growth to ensure robust risk management.

For those who frequently pay or collect funding fees, Boros introduces a powerful new hedge. Instead of passively bearing costs, traders can now actively position themselves based on their outlook.

Liquidity providers (LPs) will also benefit through Boros Vaults, which allow them to earn trading fees, PENDLE token rewards, and potential yield from favorable funding moves. These vaults mirror Pendle’s existing fixed-yield structure and are designed to bootstrap liquidity in the early stages.

PENDLE incentives will be distributed based on filled notional and order flow, with additional rewards and referral programs set to go live soon.

By bridging DeFi infrastructure with off-chain funding markets, Boros introduces a new toolset for traders, speculators, and LPs looking to navigate the volatility of crypto derivatives more effectively.