Pendle Finance Recently Launches Boros on Arbitrum
Pendle Finance has recently launched Boros on Arbitrum, tokenizing the funding rate of perpetual contracts into “Yield Units” (YUs), making the funding rate itself a tradable investment asset for the first time.
(Background: Pendle’s locked assets exceed $4 billion; how to earn leveraged returns? Complete introduction and staking tutorial)
(Supplementary Background: Pendle launches new yield products for Bitcoin; Arthur Hayes predicts: PENDLE will surge to $10)
Understanding Boros and Its Mechanism
The funding rate of perpetual contracts has long been a hidden component of trading costs for investors on centralized exchanges (CEX). However, the decentralized finance (DeFi) protocol Pendle Finance has officially launched a new platform, Boros, on Arbitrum, which tokenizes the funding rate of perpetual contracts into “Yield Units” (YUs), making the funding rate itself a tradable investment asset for the first time.
What is Boros? How does it operate?
Boros converts the funding rate of perpetual contracts into tradable Yield Units (YUs), where each YU represents the funding