What is Boros?

Boros is a yield-trading platform on margin by Pendle. Currently, Boros offers the trading of funding-rates from various avenues, including off-chain funding-rates from centralized exchanges.

It enables traders to express their view on funding rates. Those bullish on funding rates can open a long position whereas bears can open a short position. Boros also enables those with a floating funding rate exposure to hedge their funding rates payment / receivables.

There are 3 main components within Boros:

• Interest Rate Accounting. To trade a yield of a given asset, Boros has to first obtain its yield-rate via an oracle (e.g. Binance BTCUSDT funding rate, $ATOM staking rate, etc). This yield is referred to as the “Underlying Yield” as the number is obtained from the yield of the underlying asset.

• Interest Rate Trading (YU trading). Boros enables the trading of interest rates by representing a floating-yield stream into YU (yield unit). Each YU represents the yield of 1 unit of the collateral asset in the underlying yield bearing asset.

• Margin, Liquidations and Risk Parameters. To open a position on Boros, you have to place collaterals based on the desired asset. After which you can either open a long / short position on Boros. If your net balance falls under the maintenance margin, the position will be open for liquidation.