Boros by Pendle: Yield Trading with Margin

Pendle is excited to introduce Boros, a new platform designed from the ground up to bring yield trading to uncharted territories. Previously known as Pendle V3, Boros opens the door to yield trading on margin with unprecedented capital efficiency on any yields — including off-chain rates.

Pendle remains steadfast in our mission of becoming the premier yield-trading platform. This ambition extends to every yield in the world — DeFi, TradFi, on-chain, off-chain…

With Boros, Pendle is set to unlock the next major piece of the yield puzzle, starting with the most fundamental yield in crypto that’s been largely untapped — funding rates.

Perp exchanges facilitate $150-$200B of trading volume on a daily basis, and funding rates play a critical role in shaping these traders’ strategies. The ability to trade funding rates on Boros will empower traders with flexibility and precision that was previously out of reach — one that will let Pendle reimagine one of the biggest, most active markets.

Boros introduces a brand new Base that will operate alongside Pendle V2, which will continue to be improved on. We envision a future where traders and market makers employ Boros as part of their core yield strategies.

For instance, there is currently no reliable way to hedge funding rates at scale. Ethena is a prime example here where the protocol’s earnings and sustainability are highly dependent on the ups and downs of funding rates at the scale of billions of notional capital.

Boros changes the game by offering a proactive and capital efficient solution that lets traders achieve absolute control and predictability. With the Ethena example, they can hedge on Boros to achieve a fixed funding rate return on their capital. On the other side of the coin, speculators can potentially get outsized returns from trading the ups and downs of funding rates on leverage, unlocking a new realm of strategies on the interest rate dimension.

Funding rates are just one of many new beginnings for Boros. Together with V2, the collective Pendle ecosystem is gearing up to redefine the boundaries of DeFi yields.

If you’re a market maker or crypto fund interested in exploring opportunities with us, don’t hesitate to connect with us at boros@pendle.finance. We’d love to hear from you!

Tokenomics

There will be NO new token and NO changes in tokenomics/emissions.

PENDLE and vePENDLE will continue to be the focus of value accrued from both Boros and V2.

Additional Protocol Updates

Airdrop for vePENDLE

Individual vePENDLE holders will receive an airdrop from points that the protocol has collected. A snapshot of vePENDLE holdings will be taken on 31st Dec 2024 at 23:59 UTC and the tokens will be distributed accordingly pro-rata.

These airdrops will be exclusive for individual vePENDLE holders and will not extend to third-party liquid lockers.

Tokens pending to be distributed are:

Any subsequent airdrops (not mentioned above) will be distributed pro-rata to ALL participants, including liquid lockers.

Fee Optimization

As the Pendle ecosystem evolves, we’ll be implementing fee changes designed to ensure protocol sustainability and continuously drive adoption.

Protocol revenue:
• 80% to vePENDLE
• 10% to Protocol Treasury
• 10% to Protocol Operations

V2 Fees:
Incremental adjustments will be made to the YT fees and the fee split between LPs and vePENDLE to optimize for adoption.

Protocol level changes will only come into effect with the launch of Boros, while V2 Fees may be optimized as we assess ongoing needs

We believe in sharing Pendle’s success with our community, and this will remain one of our North Stars sailing on this path of ambition. Pendle has come a long way since our V1 days, and has quickly become one of the fastest growing and largest DeFi protocols in the space.

With V2, we built the primary engine for on-chain yields — staking, restaking, RWA, BTCfi, and more. Now, with Boros, which takes its name from the ancient Greek word meaning “to eat”, we’ll be looking toward even more aggressive growth beyond as we capture and consume all manners of yields.

We welcome feedback from our community and will continue to keep you informed each step of the way as we get closer to Boros’ launch. Together, we will continue to advance the yield frontier and build a stronger, more robust Pendle ecosystem.

Thank you for your ongoing support and trust in Pendle.

Job’s not done 💙