Boros Overview
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. In the future, Boros will expand to support trading yields of different categories.

Boros 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:
1. 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.
2. 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.
For example, in a BTCUSDT(Hyperliquid) market on Boros with BTC as collateral, each YU in this market represents the funding rate of 1 BTC in Hyperliquid.
Some use cases:
A trader bullish on funding-rate can enter a long position on YU. This position is effectively paying the implied APR in a fixed-stream in exchange for the current funding-rate (i.e. the underlying APR of YU). If the funding-rate yield is higher than the fixed-stream payments, the trader is in profit.
A BTC/USDT Binance perp trader can hedge their funding-rate payments by turning it into a fixed-stream payment. To achieve that, they can enter a long position on YU-BTCUSDT(Binance). This is achieved by paying a fixed stream to receive a floating stream of the underlying BTC/USDT funding rate. The results in the trader hedging the funding rate payment into a fixed payment until maturity.
A trader with a cash and carry position via perps can lock-in the current rates offered on Boros by entering a short-yield position. A cash and carry position receives funding-rate yields from the perps market. The trader can receive fixed yield by paying the current floating-stream (of funding rates) in exchange for the current fixed-stream payment. The net result of the position is a fixed-yield position until maturity.
3. 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.
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