On November 11, Pendle, a leader in yield tokenization, announced the launch of Boros, a new protocol designed to enhance its offerings with leveraged yield trading capabilities.
Contrary to expectations, the launch of Boros does not mark the introduction of a new token or changes to the existing PENDLE tokenomics. Originally thought to be Pendle’s version three upgrade, Boros instead stands as a separate initiative aimed at enriching the platform’s trading dynamics.
Boros will initially focus on tokenizing funding rates, a niche yet fundamental aspect of yield in cryptocurrency trading. Funding rates, critical in daily trades worth between $150 billion to $200 billion, have lacked scalable hedging solutions until now.
Boros proposes to offer traders the tools to hedge or speculate on these rates, providing unprecedented precision and flexibility in managing funding rate exposures.
Additionally, holders of the Ethena USDe stablecoin, which accrues yield from funding rates and Ether staking rewards, will find new hedging opportunities through Boros. This feature enables them to lock in a fixed return rate, enhancing their investment stability.