Pendle has introduced Boros, a new financial instrument that tokenizes floating funding rates on perpetual futures. This innovative approach allows traders to hedge their funding exposure by converting variable funding rates into stable, tokenized Yield Units (YU). For example, traders holding long positions can pay a fixed rate to exchange for the floating leg, while protocols like stablecoins can benefit by selling YUs to secure upfront fixed payments. Boros aims to harmonize funding rate markets, providing a structured way to manage risk and stabilize treasury incomes. The initiative also includes dedicated vaults for liquidity providers, mimicking Pendle’s V2 pools. Unlike other projects, Boros does not issue a new token but allocates 80% of its fees to vePENDLE holders, promoting loyalty among stakers. The team acknowledges challenges ahead, including liquidity requirements for smooth operation, but envisions Boros as a cornerstone for integrating yield streams into diverse DeFi applications.

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